Centre launches ₹500 crore scheme to promote EV sales till July
₹500 crore. This comes just before the ₹10,000 crore Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) II scheme ends on 31 March. Under this new scheme, incentives worth ₹333.39 crore have been set aside for electric two-wheelers.
The allocation for e-rickshaws and e-carts stands at ₹33.97 crore. Another ₹126.19 crore would go to promote sales of electric three wheelers with speeds higher than 25 kilometres per hour, known as L5. Incentives, however, would not be provided for four wheelers.
Subsidies under FAME II are available for four-wheeled vehicles. On 7 March, CNBC TV18 had first reported that the government has allocated ₹500 crore to cover subsidies for EV sales till July 31, 2024. The new scheme would offer a subsidy of ₹10,000 per electric two-wheeler, ₹25,000 per e-rickshaws and e-carts and ₹50,000 per heavy electric three wheelers.
"Through this newly launched ₹500 crore scheme, the ministry of heavy industries reiterates its commitment towards e-mobility," said the union minister for heavy industries, Mahendra Nath Pandey. The ministry had formulated FAME India Phase II scheme for a period of five years commencing from April 1, 2019 with a total budgetary support of ₹10,000 crore. According to data from the National Automotive Board, so far under phase-II of FAME scheme, nearly 1.47 million vehicles have been sold, including 1.3 million two wheelers, 150,613 three-wheelers and 18,794 four wheelers.
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