Subsidy slash on e-bikes counterproductive: Satish Reddy
The Centre has reduced the subsidy provided under Faster Adoption of Manufacturing of Electric Vehicles in India (FAME-II) scheme applicable on electric two-wheelers registered on or after June 1.
Hyderabad: Strongly opposing the Centre’s decision to reduce subsidy on electric two-wheelers, Telangana Renewable Energy Development Corporation (TSREDCO) chairman Y Satish Reddy said the reduction of subsidy would lead to decline in EV adoption.
The Centre has reduced the subsidy provided under Faster Adoption of Manufacturing of Electric Vehicles in India (FAME-II) scheme applicable on electric two-wheelers registered on or after June 1. As per the new norms for electric two-wheelers, the demand incentive will be Rs.10,000 per kWh and the cap on incentives will be 15 percent of the ex-factory price of vehicles from 40 per cent at present.
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The FAME scheme commenced on April 1, 2019, for a period of three years, which was further extended for a period of two years up to March 31, 2024.
In a statement issued here on Tuesday, Satish Reddy said according to the new norms, the incentive of Rs.15,000 on each electric two-wheeler has been reduced to Rs.10,000. Till now, there was a possibility of up to 40 percent incentive on the vehicle, but the Centre has now limited it to a maximum of Rs.10,000 or 15 percent of the vehicle price, he said.
Stating that the move of the Centre would affect the growth of electric two-wheelers in the country, Satish Reddy said that at a time when people were voluntarily shifting towards EVs, Centre taking such a decision would prove counterproductive.
Prime Minister Narendra Modi himself has boasted that he would ensure that the country has fully electric vehicles by 2030, he reminded, adding that the Centre had assured that it would extend subsidies to 10 lakh electric two-wheelers as part of Fame-2.
Satish Reddy said the Telangana government was promoting the use of electric vehicles in the State and that it had exempted 2 lakh electric two-wheelers, 5,000 four-wheelers, 500 buses and 20,000 autos from registration charges and road tax.
Noticing a large number of people shifting towards EVs, Chief Minister K Chandrashekhar Rao and Industries Minister KT Rama Rao announced exemption of registration charges and road tax for 2,000 more EV four wheelers in addition to the 5,000 four wheelers, he said.
Coming down heavily on the Centre, the Redco chairman said that while the whole world was promoting electric vehicles by introducing new technologies and incentives, the Modi government was taking decisions to harm the EV industry.
