The panel has decided that subsidies will be available to all categories of electric vehicles – two-, three- and four-wheelers – in order to promote green vehicles and check pollution. The decision was made by top officials from road transport and highways, finance and heavy industry ministry, along with government think tank NITI Aayog.

With an aim to promote eco-friendly vehicles, the government had launched the FAME India Scheme in 2015. Currently, incentives are being offered on proper hybrid and electric cars, two-wheelers and three-wheelers. FAME phase II will ensure incentives are given to a wider range of EVs. The scheme will provide subsidies to battery-operated scooters and motorcycles in a range of Rs 1,800 to Rs 29,000, based on their technology. For three-wheelers, the incentives will range from Rs 3,300 to Rs 61,000. At present, the manufacturers claim the incentive from the government at the end of each month.