MoHI wants to hike funds for electric two-wheelers by 165 per cent under FAME II: Report
ET had earlier reported that the ministry is seeking an additional INR 1,500 crore as support from the finance ministry funds earmarked for the second phase is likely to be exhausted before March 2024 due to robust electric vehicle sales.
As per the ET Auto report, MoHI has proposed to increase allocation for e-two-wheelers by 165.5 percent while slashing the same for electric three-wheelers by a whopping 60 percent.
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The ministry wants to increase allocation for electric cars, under FAME II, by 36 percent while cutting allocation for buses by nine percent and for other categories by 11 percent, ET Auto claimed.
In 2019, the government introduced the FAME-II scheme with a budget of INR 10,000 crore allocated over a three-year period. Later, in 2021, this initiative received an extension for an additional two years, extending its duration until March 31, 2024.
The FAME-II scheme provides accessibility to both the public and commercial sectors for electric three-wheelers, electric four-wheelers, and electric buses. Privately owned and registered electric two-wheelers are also eligible for the incentives it offers.
In June of the current year, the electric two-wheeler industry underwent a significant transformation due to a reduction in FAME-II incentives. Following this subsidy adjustment, several well-known E-2W models saw price increases. However, from July onwards, there has been a gradual recovery in sales on a month-to-month basis.
According to VAHAN data for the period from January to September in CY2023, the two-wheeler segment accounted for 57% of the total EVs sold in the country. This was followed by three-wheelers at
