Govt. revises FAME II subsidy on electric 2-wheelers

The subsidy on electric 2-wheelers has been raised from Rs. 10,000/kWh to Rs. 15,000/kWh.

The government of India has amended the FAME II scheme for electric vehicles in a bid to boost electric 2-wheeler sales.

As per the latest notification, the subsidy on electric 2-wheelers has been raised from Rs. 10,000/kWh to Rs. 15,000/kWh with a cap of 40% of the cost of the vehicle.

The government has also notified that it will go for aggregation via the Energy Efficiency Services Limited (EESL) to bring the cost of electric 3-wheelers at par with ICE 3-wheelers. EESL will aggregate demand for 3 lakh electric 3-wheelers for multiple user segments.

For electric buses, cities with a population of over 4 million like Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat and Pune will be targeted. EESL will go for aggregation of demand in these cities for remaining e-buses under the scheme on an OPEX basis.

Faster Adoption and manufacturing of electric vehicles in India (FAME II) was launched to generate demand for hybrid and electric vehicles. 76,008 vehicles have been sold under this scheme as of now.