The Ministry of Heavy Industry is likely to increase the FAME-II (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India) scheme outlay to around ₹1,500 crore for this financial year, with a cap on incentive of ₹10,000 per Kwh of battery capacity in electric two-wheeler (e2-W), along with a cap of 15 per cent of the ex-factory price.
Sources told businessline that the Ministry has conducted a stakeholder consultation with e2-W manufacturers to discuss the proposed changes to the scheme on May 16, chaired by a senior official of the Ministry. Of the total ₹10,000 crore, ₹2,000 crore given for e2-Ws has already been exhausted due to high demand.
‘Longer support’
“The Ministry is considering increasing the scheme outlay for e2-ws from its current level of ₹2,000 crore. The proposed increase in scheme outlay and reduction in subsidy per vehicle will enable longer government support for the e2-W segment,” a senior official privy to the meeting told businessline.
“The stakeholder consultation was well received by industry experts, who praised the Ministry’s efforts to promote sustainable transportation solutions. With these proposed enhancements, India’s EV market is poised for significant growth in the coming years,” the official added.
Mahendra Nath Pandey, Minister of Heavy Industries, had also recently said as the demand for e2-Ws continues to grow, the government is committed to providing the necessary support to the industry to ensure sustainable growth and reduce carbon emissions.