Starting April 1, electric three-wheelers and four-wheelers will have to produce a valid permit from a government agency stating that the vehicle will be used only for public transport purposes, to avail incentives under the Rs 10,000 crore FAME India scheme.

The second phase of the FAME India scheme is proposed to be implemented over a period of three years, with effect from April 1, 2019.

The scheme will support 5 lakh e-rickshaws having ex-factory price of up to Rs 5 lakh with an incentive of Rs 50,000 each. It will offer a sop of Rs 1.5 lakh each to 35,000 electric four-wheelers with an ex-factory price of up to Rs 15 lakh, with an aim to boost clean mobility in mass transport.

According to the operational guidelines for delivery of demand incentives under FAME-II notified by the Heavy Industry Ministry, a dealer will have to ensure that the demand incentive is not passed on to individuals using vehicles for private use in case of three wheelers and four wheelers.

However, a dealer can claim incentives for sale of electric two wheelers to private individuals.

In the e-3W, e-4W and e-Bus segments, incentives will be applicable mainly to vehicles used for public transport or those registered for commercial purposes. However, for e-2W segment, incentives are also applicable for privately owned vehicles in addition to those used for public transport or for commercial purposes," the Heavy Industry Ministry said.

According to the norms, "a dealer should ensure that only one vehicle per category per person are allowed to claim demand incentives. No individual person can purchase more than one vehicle of same category and claim incentives under the scheme. However, there will be no restrictions for number of vehicles to be purchased by other than individual categories of buyers".

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)