New Delhi: Electric two-wheeler major Hero Electric has said that the increase in subsidy under FAME II will help boost the demand for electric vehicles in the country. Naveen Munjal, Managing Director, Hero Electric said, “This is the most important step for the electric vehicle industry in the last decade. The increase in subsidy under FAME II will usher in a new era of electric mobility in the country. An increase in the subsidy limit will be a dice-turner. This will increase the consumer's tendency towards electric scooters with the price of petrol reaching Rs 100 per liter.
The government on Friday made partial amendments in the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India II) scheme. Under this, the demand incentive for electric two wheelers has been increased to Rs 15,000 per kWh. Earlier there was a uniform subsidy of 10,000 per kWh for all electric vehicles. These include plug-in hybrid and strong hybrid. Buses are not included in this. Under the latest amendment, the Ministry of Heavy Industries has capped the incentive limit for electric two-wheelers to 40 per cent of the cost of the vehicle. Earlier this limit was 20 percent.
Munjal said, “We are expanding our reach, installing charging points and retraining mechanics to create an ecosystem for electric vehicles. In the midst of all this, a favorable policy would encourage the growth of electric vehicles and transform the sector, he said.