- The Heavy Industries Ministry is planning to boost the budget for e-two-wheelers in its FAME-II subsidy.
- As per the report, there are no plans to extend FAME-II beyond March 2024 or introduce FAME-III.
- The FAME II stands for ‘Faster Adoption and Manufacturing of Electric Vehicles Phase II’ subsidy.
The cost of electric scooters from Ola, Ather, and other companies may increase in India in the near future. According to reports, the Heavy Industries Ministry is planning to boost the budget for e-two-wheelers in its FAME-II subsidy from the current Rs 2,000 crore and decrease the subsidy amount per vehicle.
According to a report by PTI, an unnamed government official has stated that there are no plans to extend FAME-II beyond March 2024 or introduce FAME-III as of now.
What is the FAME-II subsidy?
- The FAME II, which stands for ‘Faster Adoption and Manufacturing of Electric Vehicles Phase II’ subsidy, was launched by the Indian government to encourage the production and use of electric vehicles in India. It is a perk provided to the electric vehicle buyer in the form of a price break upfront.
- The amount of the FAME II grant would be at least one of the following – 40 per cent of the ex-showroom price or Rs 15,000 per kWh of battery capacity.
According to the official, following consultation with 24 electric two-wheeler OEMs registered under FAME-II, a stakeholders meeting was called last week. Participants decided that the demand incentive could stay at Rs 10,000 per kWh of battery capacity, with a cap of 15 per cent of the ex-factory price, instead of the current 40 per cent.
Citing the official, a PTI report mentioned that there is a plan to present a proposal to the Programme Implementation and Steering Committee (PISC) to make modifications to the Rs 10,000 crore FAME-II Scheme in the near future.
The official also stated that many two-wheeler manufacturers have asked for the subsidy to last longer, even if it is cut. Therefore, a decision was made to decrease the subsidy for two-wheelers to 15 per cent in order to extend the program until February or March, as per the report.
