Original equipment manufacturers will have to seek approval from the Department of Heavy Industry before accepting any proposal to supply electric buses for availing incentives under the FAME India scheme.
The move is aimed at facilitating the smooth roll out and management of demand incentives for electric buses under the scheme.
"... All proposals for supplying electric buses by OEMs registered under FAME India Scheme shall be first brought to the notice of the Department of Heavy Industry in writing. Once a go ahead is given by DHI, the OEMs will become eligible for FAME incentives.
"OEMs (original equipment manufacturers) are therefore, requested to follow the above instructions and await the directions from DHI before accepting any order where it is proposed to avail benefits for fully electric buses under the FAME India scheme," the department said.
The scheme offers sops on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars, thereby lowering their price for buyers.
With an aim to promote eco-friendly vehicles, the government had launched the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-India) scheme in 2015.
The FAME India Scheme is aimed at incentivising all vehicle segments, including two-wheelers, three wheeler auto, passenger four-wheeler vehicle, light commercial vehicles and buses. The scheme covers hybrid and electric technologies like a strong hybrid, plug-in hybrid and battery electric vehicles.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)