Private electric 4 wheelers left out of subsidy scheme

ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 26th June. Click Here for more information.

  1. The government has decided against offering subsidy to private electric four wheelers under FAME II. The Union Cabinet has recently approved the proposal for implementation of ‘Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II)’.
  2. The main objectives of the scheme are a) encourage faster adoption of Electric and hybrid vehicle by way of offering upfront Incentive on purchase of Electric vehicles and b) establish necessary charging Infrastructure for electric vehicles.
  3. The FAME II scheme will put emphasis on electrification of the public transportation that includes shared transport. Demand Incentives on operational expenditure model for electric buses will be delivered through State or city Transport Corporation.
  4. In 3W and 4W segment incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes. While, in case of the e-2Ws segment, the emphasis will be on the private vehicles.
  5. The benefits of incentives, will be extended to only those vehicles which are fitted with advance battery like a Lithium Ion battery and other new technology batteries. Thus the popular e-rickshaws are unlikely to get the benefit as they do not use high quality batteries.
  6. Further, under the scheme, charging stations would be established in metros, other million plus cities, smart cities and cities of Hilly states and major highways connecting major city clusters.
Print Friendly and PDF