The government is set to lower the subsidy on electric two-wheelers as part of a broader restructuring of financial incentives for this fledgeling industry.
However, the total amount allocated towards providing incentives for such eco-friendly vehicles may be raised from the current â¹2,000 crore, the heavy industries ministry said in a statement.
The subsidy per kilowatt (kWh) of battery capacity will be reduced from â¹15,000 to â¹10,000 per electric two-wheeler under the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) II scheme.
The incentive per vehicle will also be capped at 15% of the ex-factory price, a sharp cut from the previous 40%, the ministry said. The move is aimed at streamlining the allocation of funds and ensuring efficient use of resources, it said.
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