India Approves $1.4 Billion Electric Vehicle Incentive Scheme

India’s cabinet has approved a scheme to spend $1.4 billion to subsidize sales of electric and hybrid vehicles as part of efforts to curb pollution and reduce dependency on fossil fuels.

Reuters reported earlier on Thursday that the government could approve the scheme, known as Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), as early as this week.

Under the scheme, subsidies would be offered based on the battery capacity of the vehicle, ranging from buses and cars to three-wheelers and motorbikes, a government statement said. The incentives would be applicable only on vehicles costing less than 1.5 million Indian rupees ($21,177).