Business Autos 26 Mar 2019 No government incen ...

No government incentives for private e-cars

Published Mar 26, 2019, 2:29 am IST
Updated Mar 26, 2019, 2:29 am IST
Under FAME II, two-wheelers costing up to Rs 1.5 lakh are eligible for incentive of up to Rs 20,000.
electric vehicles
 electric vehicles

New Delhi: FAME India incentives will be available only for electric vehicles certified for use as public transport. Two-wheelers, however, are exempted from this restriction.

A government notification on Thursday said starting April 1, electric three- and four-wheelers will need a valid permit from a government agency stating that the vehicle will be used only for public transport purposes to avail of incentives under the Rs 10,000-crore ‘faster adoption and manufacturing of (hybrid) and electric vehicles,’ or FAME India scheme.


The FAME India scheme, the government said, will also offer a sop of Rs 1.5 lakh each to 35,000 electric four-wheelers (e-4W) with an ex-factory price of up to Rs 15 lakh with an aim to boost clean mobility in mass transport.

The second phase of the FAME scheme starting next week and spanning three years will support 5 lakh e-rickshaws (e-3W) having ex-factory price of up to Rs 5 lakh with an incentive of Rs 50,000 each.

The modus operandi of the scheme is that at the time of selling, the dealer has to collect from the purchaser of e-3W or e-4W a valid permit from respective government agency, stating that vehicle will be used for public transport or for commercial transport only. “In the e-3W, e-4W and e-bus segments, incentives will be applicable mainly to vehicles used for public transport or those registered for commercial purposes,” the notification added.

According to the operational guidelines for delivery of demand incentives under FAME-II notified by the heavy industry ministry, a dealer will have to ensure that the demand incentive is not passed on to individuals using the vehicles for private use in case of three-wheelers and four-wheelers. “However, for e-2W segment, incentives are also applicable for privately owned vehicles in addition to those for public transport or for commercial purposes,” it said.

Under FAME II, two-wheelers costing up to Rs 1.5 lakh are eligible for incentive of up to Rs 20,000. “A dealer should ensure that only one vehicle per category per person are allowed to claim demand incentives. No individual person can purchase more than one vehicle of same category and claim incentives under the scheme,” the notification said.

It however, added that there would be no restrictions on the number of vehicles to be purchased by other than individual categories of buyers. Previously under FAME I, electric vehicles for personal usage were allowed to avail the government support.

And, under the FAME II scheme, the subsidies will be restricted only to advanced battery technologies.

Location: India, Delhi, New Delhi