Currently, there is no proposal to extend the FAME II scheme further than March 2024 or bring in FAME III.
The Heavy Industries Ministry aims to broaden the outlay for its electric two-wheelers, which is presently at Rs 2,000 crore, in FAME II, and lower the subsidy on each vehicle, PTI reported.
Currently, there is no proposal to extend the FAME II scheme further than March 2024 or bring in FAME III, an official told PTI, on condition of anonymity.
A shareholder meeting with 24 electric two-wheeler OEMs coming under the purvey of the FAME II subsidy, was convened on Tuesday, and there was general agreement that ‘the demand incentive be kept at Rs 10,000 per kWh battery capacity, with a cap of 15 percent of ex-factory price, from the 40 percent currently’, the official told PTI.
The official further told PTI that a proposal to this effect, will be put before the Programme Implementation and Steering Committee.
The Union Ministry of Heavy Industries, Mahendra Nath Pandey stated that the government was collaborating closely with industry stakeholders to work on incentives to bolster the adaption of EVs in the country, PTI stated.
He expressed that most two-wheeler OEMs wanted a continuation of the subsidy period, even if it was reduced. Hence, there was a consensus to cut down the subsidy to 15 percent for 2-wheelers, which would help extend the scheme till February-March 2024.
Also See: