The Union Government is looking to provide incentives to electric vehicle manufacturers in India under the second phase of the FAME policy, by providing capital expenditure benefits to original equipment manufacturers, sources said.

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A percentage of investments made on the manufacturing plant & machinery are likely to be given back to OEMs as direct subsidy, under the government's Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India policy.

The move to sweeten the prospects for companies manufacturing batteries and hardware for EVs under the government's Make-in-India policy.

Japanese car-maker Suzuki Motor is seen as a beneficiary of this move. The company, along with Denso, is setting up lithium ion battery plant in Gujarat.

The government is also mulling creating a separate Rs 2,000 crore venture capital fund for EV related projects. The ​second phase of the FAME policy is set to be sent for approval to the Finance Ministry shortly.

First Published:Apr 4, 2018 8:40 AM IST