The subsides will be tapered down to to Rs 2,500 per KWH or a maximum of Rs 5000 per two-wheeler a year from now.
12 Sep 2024 | 3998 Views | By Kiran Murali & Amit Vijay M
The new PM E-DRIVE scheme, which replaces the FAME scheme, will initially offer a lower subsidy for electric two-wheelers and three-wheelers compared to FAME II, but the support offered will be comparable to that provided under the current EMPS scheme.
Under FAME II, the subsidy given was Rs 15,000 ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
The new PM E-DRIVE scheme, which replaces the FAME scheme, will initially offer a lower subsidy for electric two-wheelers and three-wheelers compared to FAME II, but the support offered will be comparable to that provided under the current EMPS scheme.
Under FAME II, the subsidy given was Rs 15,000 per kWh for two-wheelers, within a maximum cap of 40% of the vehicle cost. In June last year, this was revised down to Rs 10,000/kWh, with a maximum cap of 15% of the value of the two-wheeler.
In March this year, this was further revised down under the Electric Mobility Promotion Scheme (EMPS) to Rs 5,000/kWh subject to a cap of Rs 10,000 per two-wheeler.
Today, the government said that, under the PM E-DRIVE, the subsidy levels will be similar to that of EMPS for one year. A year later, the subsidies will be halved.
In other words, the subsides will be tapered down to to Rs 2,500 per KWH or a maximum of Rs 5000 per two-wheeler a year from now.
Similarly, E-rickshaws, which have a total subsidy of Rs 25,000, and passenger and cargo electric autos, which have received a maximum subsidy of Rs 50,000 under the current EMPS scheme, will continue to receive the same subsidy for the first year after the PM E-Drive scheme is implemented. However, their subsidies will be halved in the second year.
In a move that will be welcomed by the industry, senior ministry officials clarified that two and three-wheeler auto OEMs that have already obtained certification under the EMPS scheme will not be required to recertify their models under the PM E DRIVE scheme.
This move is expected to help these OEMs reduce the time lag associated with migrating to the new scheme by eliminating the need to homologate the vehicle and seek approval from testing agencies again.