The Ministry of Heavy Industries has taken several initiatives for sustainable development and carbon emission control. Promoting EVs, reducing carbon emissions and aligning with the country’s commitment to achieve net zero emissions.
Under the FAME India Scheme II, about 1,016,598 electric vehicles have been supported by way of demand incentive amounting to about Rs 4,807 crores, resulting in saving about 26,041,426 litres of fuel and reduction of about 37,718,893 Kg of CO2, according to a PIB release. It further noted that the sale of EVs negligible in 2014, has reached around 5 percent of the total vehicle sales.
MHI increased the FAME-2 subsidy budget for electric two-wheelers from Rs 2898 crore to Rs 5,172 crore in FY 22-23, resulting in approximately 710,000 electric two-wheelers receiving FAME-2 subsidies by the end of 2022.
The FAME 2 scheme was approved with an outlay of Rs 10,000 crore for a three-year term starting April 1, 2019.
The total subsidy provisioned during the launch was Rs 10,000 per kWh. However, due to low demand for electric two-wheelers during COVID-19, the subsidy was increased to Rs 15,000 per kWh.
This was rolled back to Rs 10,000 per kWh in June 2023, with the caveat that the maximum subsidy cap was reduced from 40 percent to 15 percent for vehicles up to Rs 1,50,000 as the maximum ceiling price for the vehicle.
According to industry players, India will need incentives of at least Rs 1.65 lakh crore over the next seven years to meet its 2030 target.