Team Blitz India
NEW DELHI: The government plans to reduce subsidies on electric two-wheelers, Heavy Industries Ministry sources said.
The Ministry is planning to increase the outlay for e-two-wheelers from the current level of Rs 2,000 crore under its flagship FAME-II scheme and is looking at reducing the subsidy per vehicle to 15 per cent of the ex-factory price from 40 per cent at present.
Industry players, however, describe it as a retrograde step that will hurt the market and hinder adoption of electric mobility, newspapers reported on May 19.
“We feel this sharp reduction in the subsidy is going to hurt the market and the adoption of E2Ws (electric two-wheelers) may go down substantially,” Society Of Manufacturers Of Electric Vehicles (SMEV) Director General Sohinder Gill said in a statement.
