Government Subsidy: Buy e-Bicycles on Subsidized Prices Now

E-vehicles or vehicles that run on electricity are becoming increasingly popular amidst the promotion of alternative fuels in the country. In a bid to promote green mobility & make the electric two-wheelers more affordable, the Indian government recently announced the revised FAME II subsidy.  

All e-vehicles to be included in FAME II Subsidy Scheme: 

The government is looking to include E- bicycles under the FAME-2 subsidy scheme seeing its growing popularity & the need to bring down its cost for customers. Till now,  the purview of the FAME-2 scheme includes electric two-wheelers, three-wheelers, four-wheelers, passenger vehicles and goods vehicles. But now the idea is to subsidize the entire range of e-vehicles. 

The fresh inclusion of e bicycles under this scheme would make the FAME-2 (Faster Adoption and Manufacturing of Hybrid & EV) scheme all-encompassing covering the entire range of electric vehicles being used for both personal & commercial use & public transport.  

The FAME-2 scheme was expanded by the government in June. Under this scheme, the subsidy was increased to 50 percent. Earlier the subsidy per kilowatt-hour (kWh) was 10 thousand rupees, but it has been increased to 15 thousand rupees. The maximum subsidy limit for electric two-wheelers has been increased from 20 percent to 40 percent.

As per sources, for E-cars purchased for personal use & e bicycles the government may come with a revised benefit structure. But nothing has been finalized on this yet. 

Subsidy on e-bicycle: 

A committee was constituted under the chairmanship of Pawan Goenka, Managing Director of Mahindra & Mahindra. This committee has given a formula to the government to give subsidies on e-cycle. 

Under this, a subsidy of up to Rs 5000 per unit has been suggested on e-cycle. This committee says that with this subsidy facility, the customer will save at least Rs 3000 on buying an e-cycle. 

States offering Subsidy on e-Vehicles: 

Only a few selected state governments are giving subsidies on the purchase of e-cycles. In November last year, the Delhi government provided a subsidy of up to 25 percent on the purchase of e-cycles, subject to a maximum of Rs 5,500. 

Apart from this, it was also announced to give an additional discount of Rs 2 thousand to those who bought the initial 10,000 e-cycles. Let us tell you that in today's time, alternative fuels are being encouraged. Meanwhile, e-bicycle is also becoming increasingly popular.