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NEW DELHI: Amid tension over FAME 2 subsidy scheme, the Society of Manufacturers of Electric Vehicles, on Tuesday, sought an extension of subsidies for electric vehicles (EVs) under the scheme that aims to promote its adoption. SMEV further asked the government to include light-to-heavy commercial vehicles (CVs) in it to promote electric mobility.
In its pre-Budget recommendations, the industry body is also seeking for a uniform 5% GST on spare parts for electric vehicles. On Fame 2 Scheme, SMEV said that they believe FAME’s validity needs to be extended since they are yet to meet the penetration the subsidy was supposed to catalyse.
“The new FAME II scheme should be linked to E-mobility conversion rather than being time-based. According to market trends, E Mobility, particularly E2W, has the potential to continue growing once it reaches 20% of the total 2W market. The subsidy can be tapered thereafter,” it has recommended the government.
The validity of FAME II is set to expire on March 31, 2024. SMEV said that the FAME II scheme should have provisions to directly transfer the subsidy to the customers. The government has approved Phase-II of FAME Scheme with an outlay of Rs 10,000 Crore for a period of 3 years commencing from 1st April 2019. Later it was extended by one year.
