Additionally, aggregation will be the key method for bringing the upfront cost of electric 3 wheelers at an affordable level and at par with ICE 3-Wheelers
In a major development for the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME-II) scheme, the Department of Heavy Industry has issued a partial amendment to the scheme.
Key modifications include incentives of Rs 15,000 per KWh for electric 2 wheelers, with a cap of incentives at 40 per cent of the cost of the vehicles. The incentives previously stood at Rs 10,000.
Additionally, aggregation will be the key method for bringing the upfront cost of electric 3 wheelers at an affordable level and at par with ICE 3-Wheelers. EESL will aggregate demand for 3 lakh Electric 3 Wheelers for multiple user segments, the notification explained. It added that the details will be worked out by EESL for implementation.
For Electric Buses, 4 million-plus cities including Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune, will be targeted.
EESL will go for aggregation of demand in these 9 cities for remaining E-buses under the Scheme on an OPEX basis. The details shall be worked out by EESL for implementation.
The decision has been welcomed by several EV makers in the country, who believe that these new modifications will help provide a boost to the faster adoption of electric vehicles in the country, which has been the goal of the scheme when the government announced the second iteration of the FAME scheme in March 2019 with a budget of around ₹10,000 crore.
“The revision in the FAME-II policy, increasing the subsidy by 50 per cent per KWh, is a phenomenal move. Sales of electric two-wheelers have grown despite the pandemic and with this additional subsidy, we expect electric two-wheeler sales to disrupt the market, and clock 6 million-plus units by 2025,” Ather Energy CEO and Co-founder Tarun Mehta said in a statement.
Okinawa Autotech Managing Director & Founder Jeetender Sharma said, “The government of India’s revisions to FAME-II subsidies is a welcome step that will only add zeal to the adoption of electric vehicles.
