In order to provide a boost to India’s nascent EV industry, the government of India has confirmed that phase 2 of the FAME India (Faster Adoption and Manufacturing of Hybrid and Electric vehicles) scheme will concentrate on the supply and demand side of things, which includes research and development of new technologies, according to PTI.

In a written statement to the Lok Sabha, Babul Supriyo, Minister of State of Heavy Industries and Public Enterprises, said that there also needs to be a focus on R&D, such as technology development – including lithium-ion batteries, electric motors for automotive applications and battery management systems. The minister’s observations included how essential it is for the Indian automobile industry to switch from conventional internal combustion engines to electric, hybrid and fuel cell technologies.

In the coming months, the Union Cabinet is expected to consider a proposal that calls for financial support of Rs 9,381 crore for FAME India’s phase 2, which will go on for five years.

The first phase of FAME has been extended until either end-September 2018, or until the second phase comes into operation. As part of phase 1, the government has offered incentives on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars.