FAME II BUDGET BOOST, ELECTRIC TWO-WHEELERS' SALES UNAFFECTED

To give a further push to clean mobility in the country, the Ministry of Heavy Industries has enhanced the scheme outlay of Phase II of FAME India scheme from ₹10,000 crore to 11,500 crore.

- NIVEDITA MUKHERJEE

There are two riders though - first the scheme is fund and term limited that is the subsidies for demand incentives will be eligible for e-2wheeler, e-3w and e-4w sold till March 31 March 2024, or till the time funds are available, whichever is earlier. The Government also lowered the EV subsidy per unit to 15 per cent of the ex-factory price from 40 per cent for e-2Ws under the FAME India Phase-II keeping in mind the increasing penetration of the EV market. This has been implemented after stakeholder consultation meetings with OEMs of e-2W and the approval of the project implementation and sanctioning committee (PISC) for FAME Phase II.

However, in a positive development and contrary to the perception that limiting subsidy would adversely impact the EV industry, inputs received from Ministry of Road Transport and Highways indicate that no slowdown has been observed in the sale of electric two wheelers in the country after subsidy reduction per unit to 15 per cent of the ex-factory price from 40 per cent for e-2Ws under FAME India scheme Phase-II. A total of 7,34,760 units of E-2 wheelers have registered for FY2324 as on 6 February, 2024, as per government data.