FAME 2 Subsidy: The Ministry of Heavy Industries, according to reports in the media, has proposed a new methodology to determine the subsidy for EVs, which might result in a reduction of the current subsidy of Rs 15,000 per kWh to Rs 10,000 per kWh. It is anticipated that the maximum subsidy cap will be lowered from 40% to 15% of MRP.
There is currently no plan to introduce FAME-III or extend FAME-II past March 2024, according to a government official who asked to remain unnamed.
FAME 2 Subsidy changes
If the new proposal is implemented, the subsidy for electric 2-wheelers will amount to Rs 22,500 and have a battery capacity of 3.5 kWh and a price tag of Rs 1.5 lakh. The subsidy would be Rs 19,500 for electric vehicles (3 kWh battery) costing Rs 1.3 lakh, and Rs 15,000 for electric 2-wheelers (2.2 kWh battery) costing Rs 1 lakh.
More models that qualify for FAME 2 subsidies could result from this, although each vehicle would receive a less amount of funding. The FAME 2 programme is expected to support the sales of over a million electric vehicles by the end of the next year, according to the government.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER.