New Delhi: The government will reduce subsidies for electric two-wheelers and three-wheelers under the newly introduced PM E-DRIVE scheme after one year. Initially, the subsidy will remain similar to the Electric Mobility Promotion Scheme (EMPS) but will be halved in the second year.
Under FAME II, two-wheeler subsidies were previously Rs 15,000 per kWh, with a 40% cap, before being reduced to Rs 10,000/kWh. In March, the EMPS further reduced it to Rs 5,000/kWh, with a maximum cap of Rs 10,000 per vehicle. The PM E-DRIVE will maintain these levels for the first year, before lowering the subsidy to Rs 2,500 per kWh, capped at Rs 5,000.
For e-rickshaws and electric autos, current subsidies of Rs 25,000 and Rs 50,000 will continue for the first year, and then reduce by half in the following year.
The Ministry also confirmed that electric vehicle manufacturers certified under the EMPS scheme will not need to undergo fresh certification for PM E-DRIVE, potentially reducing the time for transitioning to the new subsidy framework.
Discussion about this post