New Delhi, Mar 14 (PTI) The central government’s scheme to promote e-mobility in the country with an outlay of Rs 500 crore for four months, beginning April 2024, provides a crucial transition period for the industry to stabilise, according to EV players.
The scheme will also help accelerate the adoption of electric vehicles, particularly two and three-wheelers.
“This timely initiative comes as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme draws to a close by March 31, 2024, providing a crucial four-month transition period for the industry to stabilise,” electric two-wheeler maker Raptee co-founder and CEO Dinesh Arjun said.
The current FAME subsidy is around Rs 22,500 per two-wheeler until March 31, 2024. From April 1, 2024, the Electric Mobility Promotion scheme kicks in with a further reduced subsidy of Rs 10,000 per two-wheeler till July-end, he added.
“This sends a clear signal that, while the FAME scheme cannot be extended, the government is here to ensure a smooth transition to a self-sustainable business model by the OEMs. This move reflects a pragmatic approach towards gradually weaning the industry off heavy subsidies, allowing it to sustain itself over the long run,” Arjun said.
The scheme represents a positive step towards continuing support to accelerate the adoption of EVs, he added.
Expressing similar views, Society Of Manufacturers Of Electric Vehicles (SMEV) Director General Sohinder Gill said the new scheme highlights the government’s dedication to sustainable mobility.
“With Rs 500 crore allocated, this proactive move accelerates the adoption of electric vehicles, particularly two-wheelers and three-wheelers, advancing towards greener transportation,” he added.
The significant allocation of more than Rs 300 crore for electric two-wheelers demonstrates strategic investment, fostering the growth of the EV manufacturing ecosystem, Gill said.
The Centre on Wednesday announced a new scheme to promote e-mobility in the country with an outlay of Rs 500 crore for four months beginning April 2024 for 2-wheelers and 3-wheelers.
Under the scheme, support of up to Rs 10,000 per electric two-wheeler will be provided. The aim is to provide support for about 3.33 lakh electric two-wheelers.
A support of up to Rs 25,000 will be given for the purchase of small electric three-wheelers (e-rickshaw and e-carts). More than 41,000 such vehicles will be provided the incentive under the scheme. The financial support will be up to Rs 50,000 on the purchase of a large electric three-wheeler.
The second phase of FAME-II or Faster Adoption and Manufacturing of Electric Vehicles in India programme ends on March 31, 2024. PTI RKL BAL BAL
About the Author
