Government of India is targeting a fully electric fleet for public transport, including buses, taxis and auto-rickshaws under the second phase of FAME India scheme. Department of Heavy Industries (DHI) emphasised that public transport should be 100 percent electric, as it will help to reduce pollution to a great extent.

The pilot phase or phase I of the Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India (FAME India) was launched by the government in 2015, which expires on March 31, 2018. FAME-I was focused more on private vehicles. However, the government is giving priority to public transport in the second phase of incentive scheme.

The details of subsidy proposed under second phase of FAME-I program is as follows:

The government has sanctioned a total of 390 buses, 370 taxis and 720 three-wheelers:

a) The nine big cities (Delhi, Ahmedabad, Bengaluru, Jaipur, Mumbai, Lucknow, Hyderabad, Indore and Kolkata) will be given subsidy for 40 buses each, while Jammu and Guwahati will get subsidy for 15 buses each.

b) Kolkata will get subsidy for 200 e-taxis, followed by Bangalore (100 taxis), Indore (50 taxis) and Ahmedabad (20 taxis).

c) Bangalore will get subsidy for 500 three-wheelers, followed by Indore for 200 three-wheelers and Ahmedabad for 20 three-wheelers.  

Bangalore, Ahmedabad and Indore are emerged as cities to implement multi-model electric vehicles network. The selected cities are required to finalize the tendering process and issue supply order before 28 February 2018.

The department issued an Expression of Interest (EoI) inviting proposals from million-plus cities and special category states for multi- modal transport on October 31, 2017. Under this EOI, additional incentive was also proposed to augment charging infrastructure for public transport.

In response to the EOI, the Department of Heavy Industry received 47 proposals from 44 cities across 21 states having requirement of 3,144 buses, 2,430 e-four wheeler taxis and 21,545 e-three wheeler autos with the total financial support of INR 40.55 billion (US$ 623 million) sought from the Government of India.

After evaluating the proposals, 11 cities were selected for funding under the present EOI as the pilot project for multi-modal electric public transport. DHI will allocate about INR 4.37 billion (US$ 67 million) under FAME-I, including INR 400 million (US$ 6.1 million) as incentives for installation of charging infrastructure. The department is planning to increase allocation of funds under FAME-II.