The central government has reduced the subsidy provided under FAME-II (Faster Adoption of Manufacturing of Electric Vehicles in India) scheme applicable on electric two-wheelers registered on or after June 1, 2023.
The Ministry of Heavy Industries notified the changes. For electric two-wheelers, the demand incentive will be Rs 10,000 per kWh. The cap on incentives for electric two-wheelers will be 15 per cent of the ex-factory price of vehicles from 40 per cent at present. Notably, FAME India scheme commenced on April 1, 2019, for a period of three years, which was further extended for a period of two years up to March 31, 2024.