The Indian government has decided to release more than Rs 500 crore ($68 million) of subsidy under its Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme to four electric two-wheeler manufacturers. The move comes after these companies agreed to reimburse consumers for chargers, according to government sources.
The four companies set to receive the subsidy are Ola Electric, Ather, TVS, and Hero MotoCorp, with Ola slated to receive the highest payout of around Rs 370 crore. Ather is set to receive about Rs 275 crore, while TVS is expected to receive upwards of Rs 150 crore, and Hero MotoCorp will receive Rs 28-30 crore.
The remaining amount, which totals Rs 288 crore, will be released once the companies submit details of the reimbursements made by them. Ather is set to make the highest amount of reimbursements, around Rs 140 crore to 95,000 buyers of its Ather 450X model of electric two-wheeler, while Ola 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 a few years ago with a budget of Rs 10,000 crore to promote electric vehicles, especially those used for public transport. However, the scheme has faced delays in payments to the companies due to complaints.
This fiscal year, the Ministry of Heavy Industries is looking to settle bills of Rs 5,000 crore under the FAME II scheme. The release of the subsidy to these electric two-wheeler manufacturers is expected to promote the adoption of electric vehicles and reduce air pollution in India.
