Brain Booster for UPSC & State PCS Examination (Topic: Subsidy on Electric Vehicles)

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Subsidy on Electric Vehicles

In view of the adoption of ecofriendly vehicles, the government of India has decided to increase subsidy for such vehicles by 50% under the Faster Adoption and Manufacturing of Electric Vehicles Phase II (FAME Phase II) scheme

The Centre has made a partial modification of the FAME Phase II , including increasing the demand incentive for electric two-wheelers to Rs. 15,000 per KWh from an earlier uniform subsidy of Rs. 10,000 per KWh for all EVs, including plug-in hybrids and strong hybrids except buses.
The department of heavy industries also capped incentives for electric two-wheelers at 40% of the cost of vehicle, up from 20% earlier.

The government’s continued support to drive adoption of EVs, with a keen focus on locally built electric two-wheelers will make India the manufacturing hub of EVs.
The latest decision will bring down the prices of electric two-wheelers nearer to the IC (internal combustion engine) vehicles and remove one of the biggest blocks, of the high sticker price of electric two-wheelers.
Together with the other important factors like extremely low running cost, low maintenance and zero emission, such price levels will surely spur a substantial demand for electric two-wheelers.

The National Electric Mobility Mission Plan (NEMMP) 2020 is a National Mission document providing the vision and the roadmap for the faster adoption of electric vehicles and their manufacturing in the country.
As part of the NEMMP 2020, Department of Heavy Industry formulated a Scheme viz. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in the year 2015 to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same.
The Phase-I of the Scheme was extended from time to time and the last extension was allowed till 31st March, 2019.
Presently, Phase-II of FAME India Scheme is being implemented for a period of 3 years from 01st April, 2019 with a total budgetary support of Rs. 10,000 crore.
The scheme is intended to support the hybrid/electric vehicle market development and its manufacturing eco-system to achieve self-subsistence.
The scheme has four focus areas i.e. Technology Development, Demand Creation, Pilot Project and Charging Infrastructure.