On Wednesday, Auto industry body Society of Indian Automobile Manufacturers (SIAM) termed the government's move to extend the FAME II certification validity by one year as a step in the right direction.

This measure will enable FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) eligibility certificate to be valid for one year from the last date of certification instead of the financial year norm earlier, SIAM said in a statement.

"We appreciate and thank the Department of Heavy Industry (DHI) to accept this recommendation of the industry. Such progressive measures would help bolster the industry's confidence to introduce more and more electric models with time" it added.

SIAM noted that the scheme is largely on the right track and would result in desirable outcomes in the coming few years.

The DHI on Monday extended by one year the eligibility certificates issued by testing agencies and approvals for electric vehicles given by the National Automotive Board (NAB) and DHI that were valid till 31st March, 2021.

Originally, manufacturers were required to submit re-validation certificates for availing of demand incentives under the FAME-II scheme.

In 2019, the government had announced an outlay of Rs 10,000 crore for the FAME II scheme for three years till 2022. The scheme had envisaged supporting 10 lakh electric two-wheelers, 5 lakh three-wheelers, 55,000 four-wheelers and 7,000 buses.