Finance Minister Arun Jaitley today earmarked Rs 75 crore for faster adoption and manufacturing of electric vehicles in 2015-16. "Government is also launching a scheme for faster adoption and manufacturing of electric vehicles (FAME) with an initial outlay of Rs 75 crore," he said while presenting the Budget for 2015-16. National Electric Mobility Mission Plan (NEMMP) will create a significant positive impact on the health index of country by promoting zero pollution electric vehicles and reducing the dependence on the fossil fuel.

Reacting to the development, Society of Manufacturers of Electric Vehicles (SMEV), Director-Corporate Affairs, Sohinder Gill termed the allocation towards promoting electric vehicles and supporting charging infrastructure and R&D investments as a welcome step. "It’s like a life saver for the ailing companies who had invested into the environmentally friendly vehicles but were bleeding heavily because of the lack of government support," he added.

"A clear roadmap on GST, increased investment in infrastructure, agriculture investment and reforms, increased alloaction to electric vehicles and a focus on skilled development will also support auto demand," said PwC India, auto expert and partner, Abdul Majeed.

By Premji