The Indian Government has reportedly decided to release a subsidy of over Rs 500 crore under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme to four leading Indian EV makers. According to reports, Ola Electric, Ather, TVS Motors, and Hero Electric will receive the subsidy to further boost the country’s EV Industry and encourage the adoption of clean energy vehicles.
The announcement comes after these four companies agreed to refund consumers for EV chargers that they previously charged separately, which has been seen as a positive step in promoting the adoption of electric vehicles in India. The Indian Government hopes that this subsidy will incentivize the development of innovative and affordable EV models, which in turn will help reduce air pollution and contribute to India’s efforts towards sustainable development.
As per an Economic Times report, Ola Electric, led by Bhavish Aggarwal, will receive the highest payout of Rs 370 crore from the Ministry of Heavy Industries. Ather will be granted around Rs 275 crore, while TVS will receive approximately Rs 150 crore, and Hero MotoCorp will get Rs 28-30 crore. The remaining amount, which adds up to Rs 288 crore, will be released once the companies submit details of the reimbursements made by them, the sources said.
Ather has the highest amount of reimbursements to make, around Rs 140 crore to 95,000 buyers of its Ather 450X model of electric two-wheelers. Similarly, Ola Electric has to clear a bill of around Rs 130 crore to almost 1 lakh buyers of its Ola S1Pro before the Government releases the funds.
The FAME II scheme was launched by the Indian Government in 2015 to incentivize the production and adoption of electric and hybrid vehicles in the country. The scheme ran into trouble in the past due to delayed payments to the companies and complaints received. However, the Ministry of Heavy Industries is now looking to settle bills worth Rs 5,000 crore in the current fiscal year, and this new subsidy is expected to provide a significant boost to Indian EV makers and encourage the development of more affordable and sustainable electric vehicles.
Overall, the subsidy under the FAME II scheme is a positive development for the EV industry in India, and it is expected to encourage more companies to enter the market and promote sustainable transportation.
