FAME Subsidy for e-Cycles?

classic Classic list List threaded Threaded
3 messages Options
Reply | Threaded
Open this post in threaded view
|  
Report Content as Inappropriate

FAME Subsidy for e-Cycles?

anku94
Hi guys,

Just to provide a background, FAME is a Central Govt. Scheme under the National Mission for Electrical Mobility to provide incentives for the purchase of electric vehicles. This scheme covers a wide variety of vehicles, from e-bikes to cars of various technical specifications. You can read the Gazette notification on the website for full details (http://www.fame-india.gov.in/ViewNotificationDetails.aspx?RowId=5).

Right now, there's an ambiguity on whether electric cycles like Spero are eligible for this subsidy or not. I talked to Mr. Manikandan (from Milltex, founder of Spero, who was super responsive about this, btw) and he says that they are in constant touch with the concerned authorities but it's not clear at this stage whether cycles like Spero are eligible for subsidy (which start at Rs. 7500, and could be Rs. 9600 for e-bikes with modern Lithium based batteries).

Since the difference between an electric cycle and a bike/scooter is a superficial one, and e-scooters/bikes of <=250W are anyway covered in this scheme, there is no reason e-cycles should not be covered. Given the generous amounts of subsidy on offer, having e-cycles in scope would provide a significant impetus to this budding sector.

Is there something we as a community can do to push for a favorable interpretation of the rules? The concerned ministry is Department of Heavy Industry (Ministry of Heavy Industries and Public Enterprises).
Reply | Threaded
Open this post in threaded view
|  
Report Content as Inappropriate

Re: FAME Subsidy for e-Cycles?

kamyFC
Administrator
Hi,

 I put this question to Industry leaders and this is what they have had to say.

This is apparently from a from a senior DHI member.
That cycles don't consume any fuel.  FAME Scheme is in order to encourage clean fuel.
So for the government it makes no sense giving any demand side incentive to buy an e-Cycle

But the industry are hoping this can change.

The FAME proposal is likely to be reviewed during the current budget preparation and the EV Industry is expecting some amendments by middle of next year.        
Ministry has hired a consultant to review the challenges and submit reports.

The e-Cycle companies hope that there will be some incentives for them.

Lets all hope for the best!

Thanks,
Kamlesh
Reply | Threaded
Open this post in threaded view
|  
Report Content as Inappropriate

Re: FAME Subsidy for e-Cycles?

anku94
Hey, thanks for the reply.
That cycles don't consume any fuel.  FAME Scheme is in order to encourage clean fuel.
If there were no e-cycle in the market I'd have bought a bike, not a manual cycle

Anyway the differentiation should be on technical grounds, right? If I were to add a body kit and remove the pedals it'd qualify as an e-scooter!
EV Industry is expecting some amendments by middle of next year
That's good to know. Thanks!
Loading...