Union Heavy Industries Minister HD Kumaraswamy announced a 1-2 month extension for the EV subsidy scheme, set to continue until the new Fame 3 project is implemented. Road Transport Minister Nitin Gadkari confirmed support for the subsidy, despite suggestions that battery price declines might reduce its necessity.
Union Heavy Industries Minister HD Kumaraswamy announced that the subsidy for electric vehicles (EVs) will be extended for an additional two months. This extension comes as a relief to both sellers and consumers who were concerned about the scheme's scheduled end this month.
Under the current scheme, known as EMPS, subsidies of Rs 10,000 and Rs 25,000 are provided for electric scooters, electric autos, and electric commercial autos, while Rs 50,000 is given for electric cars. The subsidy scheme was originally set to expire on September 30. However, Kumaraswamy revealed that it will now continue until the new Fame 3 project is finalized and implemented.
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Speaking to reporters on Monday at the annual conference of the Automobile Parts Manufacturers Association, Kumaraswamy assured, "The electric vehicle industry need not worry. The subsidy will be continued for another 1-2 months. The omissions in Fame 2 will be rectified while implementing Fame 3. Some changes are being made in the Fame 3 project."
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In response to recent concerns about the subsidy, Road Transport and Highways Minister Nitin Gadkari clarified that there is no opposition to it. Gadkari stated, "There is no objection to the subsidy for electric vehicles. This will be decided by the Finance Department and the Heavy Industries Department."
Gadkari had earlier suggested that the decline in battery prices could reduce the need for subsidies. However, he addressed this by saying, "I am not against the subsidy. I have no problem with that. I felt that EVs can be maintained without subsidy as the cost of production is low." He also added, "In the next 2 years, the price of electric vehicles will be the same as the price of petrol and diesel vehicles."