Government To Release Subsidy Under FAME II: Report According to the report, the subsidy amount will be released once the companies submit the details of the reimbursements made by them

By Teena Jose

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With regard to the electric vehicle's reimbursement notification that happened earlier this month, the government has decided to release over INR 500 crore of subsidy under FAME II to four companies, Ola Electric, Ather, TVS and Hero MotoCorp, according to a TOI report.

"Ola is in line to get the highest payout from the ministry of heavy industries, which will be able to the tune of INR 370 crore, followed by around INR 275 crore for Ather, while the subsidy bill to be settled for Hero MotoCorp will be INR 28 to 30 crore," the report cited government sources.

It further clarified that the remaining amount, which adds up to INR 288 crore will be released once the companies submit the details of the reimbursements made by them. Reportedly, Ather has the highest amount of reimbursement to make which is around INR 140 crore, whereas Ola has to clear a bill of around INR 130 crore.

The word FAME stands for Faster Adoption and Manufacturing of Electric Vehicles, which is a scheme under NEMMP (National Electric Mobility Mission Plan) of government of India that aims to promote the sale of electric vehicles across the country by providing a subsidy in the overall cost of the vehicles. The government approved Phase II of the FAME Scheme with an outlay of INR 10,000 crore for a period of three years commencing from 1st April 2019. Out of total budgetary support, about 86% of the fund has been allocated for demand incentives so as to create demand for EVs in the country.

As per previous media reports, some of the electric vehicle companies were charging customers over and above the INR 1.5 lakh threshold under the central government's FAME scheme for availing the subsidies. The companies had earlier claimed that the additional cost was for additional software features and the off-board charger. Earlier this month, the electric scooter companies agreed to reimburse the customers who bought EV chargers separately.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

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