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Revised Subsidy For Electric Vehicles

Revised Subsidy For Electric Vehicles:

The central government has decided to increase the subsidy by 50% on electric two-wheelers under the FAME-II (Faster Adoption and Manufacturing of Electric Vehicles) scheme in view of the adoption of eco-friendly vehicles.

New Modification:

  • The Centre has made a partial modification of the FAME-II, including increasing the demand incentive for electric two-wheelers to Rs. 15,000 per KWh from an earlier uniform subsidy of Rs 10,000 per KWh for all EVs, including plug-in hybrids and strong hybrids except buses.
  • The government has also capped incentives for electric two-wheelers at 40% of the cost of vehicles, up from 20% earlier.
  • It will bring down the prices of electric two-wheelers nearer to the ICE (internal combustion engine) vehicles and remove one of the biggest blocks of the high sticker price of electric two-wheelers.
  • Together with the other important factors like extremely low running cost, low maintenance, and zero-emission, such price levels will surely spur a substantial demand for electric two-wheelers.

FAME-II:

  • FAME India is a part of the National Electric Mobility Mission (NEMM) Plan.
  • The main thrust of FAME is to encourage electric vehicles by providing subsidies.
  • NEMM intends to allow hybrid and electric vehicles to become the first choice for the purchasers so that these vehicles can replace conventional vehicles and thus reduce liquid fuel consumption in the country from the automobile sector.

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