The plan will be implemented alongside the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme.
The government is working on Rs 40,000 crore on subsidies and benefits to give electric vehicles (EVs) a push from the manufacturing side, the Business Standard reported.
The money will be spent over the next 10 years, the report added.
“From 2010-21 to 2029-30, we are expecting to spend around Rs 40,000 crore in benefits and subsidies. It will be a central government scheme under which new as well as existing players will be given sops,” a source told the publication.
The move is expected to benefit micro, small and medium enterprises (MSMEs) which manufacture lithium ion batteries and automobile parts.
The benefits could include tax breaks, subsidized loans, or even direct loans to MSMEs, the report said.
Moneycontrol could not independently verify the news.
“A Cabinet note is being prepared and the scheme, which will be under ‘Make in India’, is expected to be announced very soon,” a source told the Business Standard.
With the scheme, the government also intends to lower dependence on China for EVs, an official told the publication.
The plan will be implemented alongside the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme.The government has already set aside Rs 10,000 crore for the FAME-II scheme, an amount which will be spread over the next three years.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.