Ola, Ather, and other two-wheeler electric vehicles may soon be more expensive in the nation. According to reports, the Heavy Industries Ministry intends to boost the budget for e-two-wheelers from the existing level of 2,000 crores under its flagship FAME-II subsidy project while decreasing the subsidy per car.
According to a PTI report, a government source who requested anonymity said that there is currently no plan to extend FAME-II beyond March 2024 or to introduce FAME-III.
According to the official, a stakeholders’ meeting was called on Tuesday with 24 electric two-wheeler OEMs registered under FAME-II, and the consultation reached a consensus that the demand incentive may be kept at 10,000 per kWh of battery capacity, with a cap of 15% of the ex-factory price, down from 40% currently.
He further mentioned that a proposal in this respect would be presented to the Programme Implementation and Steering Committee (PISC) soon to make adjustments to the 10,000 crores FAME-II Scheme.
“On Tuesday, we convened a meeting of 24 registered OEMs of electric two-wheelers. It was determined that we would move 1,500 crores in unutilized subsidies from 3 Wheelers and 4 Wheelers to 2 Wheelers, but it was discovered that at the present pace of disbursement (40 percent limit on ex-factory price), the plan will expire in two months,” the person added.
He said that the majority of two-wheeler OEMs have stated that the subsidy should be extended even if it is reduced. As a result, an agreement was reached to cut the subsidy for two-wheelers to 15%, extending the plan through February-March.
He reasoned that “eventually the industry has to stand on its own feet,” while acknowledging that the fast-growing electric 2-wheeler sales “may slow a little.”
Speaking on the subject, Union Minister of Heavy Industries Mahendra Nath Pandey said that as demand for e-two-wheelers grows, the government is dedicated to providing the sector with the necessary assistance to promote sustainable development and minimize carbon emissions.
According to a PTI report, the government is working closely with industry players to devise laws and incentives to stimulate the adoption of electric cars throughout India.
“The consensus reached during the stakeholder consultation represents a positive step forward in India towards sustainable transportation solutions.” India can become a worldwide leader in sustainable transportation and decrease its reliance on fossil fuels with ongoing efforts and partnerships from the government and businesses.
“This move will not only benefit the environment but will also contribute to the development of a stronger and more resilient economy,” added the minister.
In a nutshell, the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) India plan began on April 1, 2019, and will run for three years. It was finally extended for two years, until March 31, 2024.
FAME Scheme Phase II would cost a total of 10,000 crores. It is intended to reward electric car customers to facilitate widespread adoption, which may be encouraged as a purchase price.
