Union Ministry of Heavy Industry has announced major amendments in ongoing FAME-II scheme. Ministry has fixed incentives for India-made electric 2-wheelers.
- With the recent amendments on price side and subsidies govt aims to promote electric two-wheeler usage across India.
- The Reduction is price will help in EV adoption and strengthen government’s plans of making India an electric vehicle nation by 2030.
Earlier, subsidy rate for electric 2-wheelers was Rupees 10,000/kWh. It has been increased to Rupees 15,000/kWh, which is nearly 40% of vehicle cost.
Procurement of EVs
The government of India will procure electric buses and 3-wheelers on large scale. Energy Efficiency Services Limited will be directed to procure 3 lakh electric rickshaws and has been told to aggregate demand for electric buses across nine major cities namely, Surat, Pune, Mumbai, Chennai, Ahmedabad, Hyderabad, Kolkata, Delhi and Bengaluru.
FAME India Scheme
It was launched with the aim of incentivising vehicle segments including 2-Wheeler, Passenger 4-Wheeler Vehicle, 3-Wheeler Auto, Light Commercial Vehicles and Buses. It also covers Hybrid & Electric technologies such as Mild Hybrid, plug in Hybrid, Strong Hybrid and Battery Electric Vehicles. This scheme is monitored by Department of Heavy Industries. It has 4 focus areas viz., Technology development, Demand Creation, Charging Infrastructure and Pilot Projects.
FAME II Amendment 2021 FAME II Amendment 2021