The Indian government has proposed to increase the overall funding for subsidies for electric two-wheelers but cut the subsidy available for each vehicle. Instead of the previous maximum of 40 per cent of the purchase price, only a maximum of 15 per cent would be covered under the FAME II scheme. The proposed increase in overall subsidies for two-wheelers is to come from reallocating unutilised subsidies earmarked for three-and four-wheeled electric vehicles. According to INC42, several two-wheeler electric vehicle manufacturers are currently under investigation for the misappropriation of FAME II subsidies. Union Minister of Heavy Industries Mahendra Nath Pandey said the changes were necessary because of the increased demand for electric two-wheelers.

Source: Mint May 24, 2023 19:24 UTC