DHI Increases Incentives for Electric Two Wheelers Under FAME II

In a constant push towards dynamic electric vehicle (EV) adoption in the country, the Department of Heavy Industries (DHI) has brought up some partial modifications in the FAME II (Faster Adoption and Manufacturing of Electric Vehicles in India Phase II). DHI has increased the demand incentives by 50 percent for the electric two-wheeler (E2Ws). Hence, the demand incentives for E2Ws have been increased to Rs 15,000 per KWh from the earlier uniform subsidy of Rs 10,000 per KWh for all EVs and hybrids, except buses.

Also, under this new modification, DHI capped incentives for E2Ws at 40 percent of the cost of vehicles, up from 20 percent earlier. You can view the notification letter here.

Additionally, in an effort to boost the EV ecosystem of the country, DHI has mentioned, “Aggregation will be the key method for bringing the upfront cost of electric 3 wheeler (E3W) at an affordable level and par with ICE 3-Wheelers. EESL will aggregate demand for 3 lakh E3Ws for multiple user segments. Details will be worked out by EESL for implementation,” in the notification letter.

And considering increasing the use of electric buses in the country, DHI also mentioned, “For Electric Buses, 4 million-plus cities (Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune) will be targeted. EESL will go for aggregation of demand in these 9 cities for remaining E-buses under the Scheme on an OPEX basis. The details shall be worked out by EESL for implementation,” in the same letter.

This is not the first time when the government has modified policy or brought up new steps towards the EV push. Earlier this month, The Ministry of Road Transport and Highways (MoRTH) issued a draft notification proposing the exemption of battery-operated vehicles i.e. EVs from the registration fee and its renewal charges.

Earlier in February this year, MoRTH launched a ‘Go Electric’ campaign of the Bureau of Energy Efficiency (BEE) to promote and spread awareness on electric mobility, EV charging infrastructure, and clean and safe electric cooking in India.

And after all, we cannot forget to mention that almost every state of the country has been bringing new incentives/subsidies on EV purchases in their respective regions to strengthen EV adoption.

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Bhoomika Singh

Bhoomika is a science graduate, with a strong interest in seeing how technology can impact the environment. She loves covering the intersection of technology, environment, and the positive impact it can have on the world accordingly.

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