Govt. announce FAME-3 subsidy instead of FAME-2 for EVs and infrastructure

The two wheelers as well as four wheeler electric vehicles that have a long road to travel to travel  and as far as the Indian government is subsidizing. Electric Mobility is concerned. There seems to be some sort of a new plan in place by the way of Fame-III. 

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We’ve seen Fame 2 outlay of 10,000 crore rupees. There’s going to be a FAME-III now. It’s going to be different from what the Fame scheme has been so far.

It is expected to be more towards the infrastructure. It is not just on the consumer side of it subsidizing the vehicle but the other side is the legal actions are still playing out. So the ministry of heavy industry said that they’ll take legal actions against the 17 OEMS. 

It has basically floated the eligibility limit of 1.5 lakhs by separating AC charge EV charges from the cost of the vehicles.

There was a letter an email that was sent out to the Department of heavy Industries. Some of these players namely out of the 13. Existing players have flouted the localization Norms to be particular which is 50  percent of your vehicle should be locally made. 

 The government says pay us back right to the tune of 400 crore that’s right and unpaid subsidies of 12,100 crore still pending. 

By the way of reducing the subsidy from 45 to 15 amounting to a reduction in subsidy for the consumer from 50,000 rupees per vehicle to about 21 000 rupees per vehicle which is still subsidized.

 So,Fame has not really been taken away the amount of subsidies given to the end user through the distributor.

The manufacturer have been reduced from fifty thousand to twenty one thousand rupees only for eligible those who have not flouted the localization Norms. Now the government’s logic there was that

let’s give subsidy to more number of people within the budget of 10,000 crore rupees allocated earlier and that would give an extension to the longevity of the fame scheme as opposed to giving more subsidy to fewer people. 

So, subsidize more number of consumers more number of vehicles rather than heavily subsidized few consumers and few Vehicles. 

Read more:Top 5 upcoming electric bikes in India 2023-24

Now what Fame 3  is going to do apparently. This subsidy even to Light commercial vehicles and that will now likely be included in Fame 3. It is not going to be restricted to Electric two wheelers alone but will be expanded to commercial light Vehicles as well.

Source:- Times of India

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