Electric two-wheelers are in focus after the government made some major revisions to the Faster Adoption and Manufacturing of Electric Vehicles or the FAME scheme.
These revisions will see higher subsidies for two wheelers that meet the FAME scheme eligibility criteria of a minimum range of 80 kilometers and a minimum top speed of 40 kilometers per hour.
The previous subsidy amounted to Rs 10,000 per kilowatt hour and it has now gone up by 50 percent to Rs 15,000 per kilowatt hour. The move will see a significant reduction in the purchase price of these vehicles.
The government has also modified the scheme to allow state-run EESL to aggregate demand for 3 lakh electric three-wheelers and over 4,000 electric buses. The Centre also notified an Rs 18,000 crore production-linked incentive (PLI) scheme for advanced chemistry cell battery manufacturing. The government expects the move to bring in foreign and domestic investments worth Rs 45,000 crore.
An extension of the FAME scheme by two years is also likely to be on the cards.
To understand whether these moves will accelerate India’s EV adoption which is still at 1.2 percent of overall vehicle sales, CNBC-TV18’s Parikshit Luthra spoke to Tarun Mehta, founder and CEO of Ather Energy; Nishant Arya, MD and Vice Chairman of JBM Auto; Sudhendu Sinha, adviser at Niti Aayog; and S Vijayanand, President of New Energy Amara Raja Group.
For the entire discussion, watch the video.