Govt. could end FAME-II subsidy on electric 2-wheelers soon

The govt. is looking at a new scheme to encourage high-end electric car makers like Tesla to manufacture in India.

According to media reports, the government is not keen on introducing the third phase of the “Faster Adoption and Manufacturing of Electric Vehicles” or FAME III. As a result, the subsidy on electric 2-wheelers could end in the coming weeks.

The report states that the finance ministry has opposed the proposal submitted by the heavy industries ministry. The government expects the transition to cleaner-fuel vehicles to happen naturally despite the higher capital cost.

The government had allocated Rs 10,000 crore for the FAME II scheme, which will end in the next few weeks. Around 10 lakh 2-wheelers are expected to benefit from this scheme.

The government is now looking at a new scheme to encourage high-end electric car makers like Tesla to manufacture in India. It could be similar to the production-linked incentive (PLI) scheme.

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