The Ministry of Heavy Industries has cut the FAME II subsidy from 40% to 15% for electric two-wheelers (E2Ws). As per a gazette notification issued on Sunday, May 21, the new amendment will come into force from June 1.
Further, as against INR 15,000/kWH, only INR 10,000//kWH will now be available as a subsidy. This amendment has come at a time when the E2W industry is going through a tough time.
Also Read: SMEV Recommends Direct Subsidy To Consumer Under FAME
The total number of E2Ws sold under the FAME II scheme between April 2019 and 2023 is listed at 9.6 lakh. Of these, SMEV (Society of Manufacturers of Electric Vehicles) claims 4.5 lakh vehicles have not been reimbursed the subsidy component to date, “on one account or the other.'