New Delhi, Feb 9

The government reduced the electric vehicle (EV) subsidy for electric two-wheelers (e-2Ws) to 15 per cent of the ex-factory price from 40 per cent under the Faster Adoption & Manufacturing of Electric Vehicles (FAME) India scheme phase-II, keeping in mind the increasing penetration of the EV market.

“This was implemented after stakeholder meetings with original equipment manufacturers (OEMs) of e-2W, and the approval of the project implementation and sanctioning committee (PISC) for FAME India scheme phase-II,” Krishan Pal Gurjar, Minister of State for Heavy Industries, said in a written reply in the Rajya Sabha on Friday.

Under phase-II of the scheme, EV manufacturers would not get any incentives. Incentives/ concessions will be given to consumers (buyers/end-users) in the form of an upfront reduced purchase price for hybrid vehicles and EVs, to enable wider adoption, which would be reimbursed to the OEM (EV manufacturers) by the government, he said.

“Further, two production-linked incentive (PLI) schemes are being implemented by the Ministry of Heavy Industries to boost manufacture of electric vehicles in India and increase exports,” he said.

The first, a PLI scheme for the ‘National Programme on Advanced Chemistry Cells (ACC) Battery Storage’ to promote manufacture in the country. The budgetary outlay for the scheme is Rs 18,100 crore and it envisages establishment of a cumulative ACC battery manufacturing capacity of 50 GWh.

The second PLI scheme is for the automobile and auto component industry, which was approved on September 15, 2021, with a budgetary outlay of Rs 25,938 crore that provides financial incentives to boost domestic manufacture of Advance Automotive Technologies (AAT) products (including EVs and their components).

As on February 6, 7,34,760 units of e-2Ws were registered in FY23-24, he added.

Outlay on FAME India scheme phase-II enhanced

Meanwhile, to give a further push to clean mobility in the country, the MHI has enhanced the outlay on the FAME India scheme phase-II to ₹11,500 crore from ₹10,000 crore.

Further, the scheme is a fund and term limited, i.e. the subsidies for demand incentive will be eligible for e-2W, e-3W and e-4W sold till March 31, 2024, or till the time funds are available, whichever is earlier, it added.