Niti Aayog suggests Govt to provide incentives on EV purchase apart from subsidy under FAME-II

Government think-tank Niti Aayog has said the government should provide incentives on electric vehicle (EV) purchase over and above the existing subsidy under the Faster Adoption and Manufacturing of Hybrid and EV (FAME-II) scheme.

The Niti Aayog in its status quo analysis of electric mobility in India also said the government should include EVs and associated businesses in the priority sector lending category.

“The government should give EV purchase subsidy over and above FAME-II subsidy along with interest subvention on loan amount taken for EV purchase,” the Aayog said.

It further pitched for creation of non-financial incentives, including priority lanes and exclusive parking for EVs in commercial complexes.