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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n