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.
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