If you are planning to buy an electric scooter, here is what you must know: from the first day of the coming month, 2-wheeler electric vehicles (EVs) will become costlier. This is because of a reduction in subsidy provided by the Union government to electric 2-wheelers registered on or after June 1.
What is the issue?
Last week, the Ministry of Heavy Industries, Government of India, notified the changes. Under these, the subsidy for electric scooters under the ministry-backed FAME-II (Faster Adoption of Manufacturing Electric and Hybrid Vehicles in India) scheme is being reduced from June 1.
This means that once the changes are effective, the maximum subsidy for 2-wheeler EVs will come down to 15% of the ex-market price of the vehicle, from the existing 40%. The subsidy, on the other hand, will be ₹10,000 per kWh of the EV’s battery capacity, instead of the current ₹15,000..
What is FAME-II?
The scheme came into effect on April 1, 2019 for a period of 3 years, and now stands extended by another 2 years, up to March 31, 2024. Under phase 2, the total outlay is ₹10,000 crore to provide incentives to EV buyers to enable wider adoption.
While the scheme is primarily for 3-wheeler EVs, 4-wheeler EVs, and e-buses, benefits under it are available to privately owned registered electric 2-wheelers as well.
(With PTI inputs)
