Govt backs all green mobility

ALL ROADS TO GREEN PLI-Auto is a ₹25,938-cr scheme offering incentives to make vehicles that run on green fuel THE heavy industries ministry expects ₹2,000 cr in PLI-Auto claims from the industry in FY26

- Manas Pimpalkhare

Union heavy industries and steel minister H.D. Kumaraswamy has weighed in on the automotive industry's concerns about state governments equating hybrid and electric car incentives, stating that the government continues to support all clean fuel for automobiles.

He said the government has incentivized hybrid cars under subsidy schemes such as FAME II, and hybrid ambulances under PM E-drive. In addition, under the PLI-Auto scheme, the government supports all kinds of fuels besides EVs, including CNG, LNG, and biofuels.

"Under the FAME-II Scheme, EV (electric vehicles) and hybrid version of e-4Ws was allowed for incentivization. Similarly, in case of PM E-drive scheme, a hybrid version of e-ambulances, that is, electric plug-in hybrid & strong hybrid shall be incentivized," said Kumaraswamy in an email interview with Mint.

"Further, besides EV, the government supports all kinds of fuels viz. CNG, LNG, and bio-fuels under the PLI Auto Scheme," he added.

FAME, or Faster Adoption and Manufacturing of Electric (and Hybrid) vehicles scheme, ran for two iterations from FY15 to FY19, and from FY20 to FY24. Currently, the PM E-drive scheme has replaced the FAME schemes. Under all these schemes, consumers could purchase electric vehicles at a subsidized price. The government then reimbursed manufacturers the difference.