Until March 31, the central government was subsidizing electric vehicles sold in India under the FAME II scheme. The central government was giving this subsidy to encourage the use of electric vehicles in India. Under this scheme, electric vehicle manufacturing companies can sell their electric vehicles at a discounted price to customers and get a subsidy from the central government
New Electric Vehicle Subsidy Scheme:
Following the completion of FAME II scheme, EMPS (Electric Mobility promotion scheme) 2024 came into effect from April. This scheme is also implemented to promote the use and sale of electric vehicles. Under this scheme, a subsidy of Rs.10,000 is given for electric two-wheelers and up to Rs.50,000 for electric three-wheelers. Electric two-wheeler manufacturing companies can get this subsidy amount from the central government according to the electric vehicles sold by them.
Companies Excluded from the Scheme:
Hero Electric, Okinawa and Benling India, which manufacture and sell electric scooters in India, have been excluded from the FAME II scheme by the central government. Subsequently, the central government is likely to exclude these companies from the electric vehicle promotion schemes announced by the next central government.
Why were they excluded?
In order to get subsidy under FAME II scheme, electric vehicle manufacturing companies must have a certain amount of materials used in their production to be made in India. This is an important aspect to qualify for the scheme. But, along with the above mentioned three companies AMO Mobility, Greaves Electric Mobility and Revolt Motors have also imported too much material from abroad and used it in their electric scooters.
Subsidy withdrawn:
The above mentioned companies have also received subsidies by using more imported materials in their products. Finding this out, the Union Ministry of Heavy Industries has ordered refund of the wrongly received grant amount from the above companies.
Non-reimbursing companies:
Among the above six companies AMO Mobility, Greaves Electric Mobility and Revolt Motors have wrongly refunded the subsidy amount they received. However, despite repeated notices from the central government to Hero Electric, Okinawa and Penling India, the companies have not returned the wrongly received subsidy amount. As a result, these companies have been removed from the FAME II scheme and will be excluded from the plans for electric vehicles to be announced by the central government.
