Government plans to raise outlay for e-2-wheelers under FAME-II, slash subsidy amount per vehicle

The heavy industries ministry intends to raise the outlay for e-two-wheelers under its flagship FAME-II scheme from the existing level of ₹2,000 crore and decrease the subsidy per vehicle. The current subsidy for electric two-wheelers is ₹15,000 per KW, but the ministry is planning to reduce it to ₹10,000 per KW. Additionally, it is anticipated that the maximum subsidy cap will decrease from the present 40% to 15% of MRP. As a result, even though more models will now qualify for the subsidy, the amount per vehicle will fall, leading to higher prices for customers. The Programme Implementation and Steering Committee (PISC), a panel with the authority to make adjustments to the ₹10,000 crore FAME-II Scheme, will receive a proposal in this regard. There is currently no plan to introduce FAME-III or to extend FAME-II past March 2024. 

More companies found violating FAME-II norm, to be debarred 

The government will send notifications to more businesses that have been found violating localisation regulations under the ₹10,000 crore FAME-II scheme. These companies will be debarred and any benefits they have already received during FY 2019-20 will be recovered, reported the Economic Times. According to sources, the government has issued notices to Okinawa Autotech and Hero Electric for debarment from the FAME-II Scheme, seeking the recovery of incentives claimed since FY 2019–20 after the two businesses were discovered to be breaking the scheme’s localisation requirements. Both companies have denied the allegations.

Also, the heavy industries ministry will resume disbursal of subsidies under the scheme. The Industrial Finance Corporation of India is processing the subsidy claims and subsidies disbursal under FAME-II to those whose names have been cleared after the probe will soon resume. 

Ola Electric announces it will refund charger cost to its electric scooter buyers

Ola Electric announced that it will reimburse its electric scooters buyers the cost of chargers. The business claimed in a statement posted on Twitter that despite efforts from special interest organisations, such as the recent narrative on charger pricing, the electric vehicle industry has had unparalleled growth in the past couple of years. “As a leader of the industry we remain committed to putting our customers first. Therefore, setting aside the technicalities and as an example for others to follow, we have decided to reimburse the charger monies to all eligible customers,” it stated. 

However, Ola did not provide information on how much it intended to refund. Earlier estimates put the cost at about ₹130 crore. The TVS Motor Company has also disclosed that it will offer consumers, who have paid more than the threshold limit established under the FAME plan, a goodwill benefit programme refund of about ₹20 crore.

Draft policy for regulating cab aggregators, delivery service providers in Delhi approved

Delhi chief minister Arvind Kejriwal approved the Motor Vehicle Aggregator Scheme 2023 to regulate cab aggregators and delivery service providers in the national capital, the Economic Times said. Mandatory panic buttons in taxis, integration with emergency response number ‘112’, and phase-wise transition to EVs are some of the highlights of the policy. The lieutenant governor has now received a draft of the plan. The transport department will next present it to the general public for input and criticisms before giving it its final form. The CM said that the scheme prioritises the safety of passengers, ensures timely grievance redressal and also promotes the use of electric vehicles, which will help reduce pollution levels in the city.

The scheme will be applicable to any person or organisation that utilises digital or electronic means to operate, board, or manage a fleet of motor vehicles for the transportation of passengers or to connect a driver offering to deliver or pick up a product, courier, package, or parcel with a seller, e-commerce entity, or consignor. 

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