The Central government has cut the subsidy provided under "Faster Adoption of Manufacturing of Electric Vehicles in India" (FAME-II) scheme applicable to electric 2-wheelers registered on or after June 1, 2023, a notification by the Ministry of heavy industries read.
Effectively, For the electric two-wheelers, the demand incentive will be Rs.10,000 per kWh. At present, the capital on incentives for electric two-wheelers will be 15% of the ex-factory price of vehicles from 40%. The "Faster Adoption of Manufacturing of Electric Vehicles in India" scheme commenced on April 1, 2019, for a period of 3 years, which was further extended for 2 years up to March 31, 2024.
The total outlay for "Faster Adoption of Manufacturing of Electric Vehicles in India" Scheme Phase second is Rs.10,000 crore to provide incentives to buyers of electric vehicles so as to enable wider adoption, which may be encouraged as a purchase price. The scheme is exclusively for public and commercial transport in the sectors of electric 3-wheelers, electric 4-wheelers and electric buses.
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