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The Heavy Industries Ministry on Friday said the FAME-II incentive, which is designed to stimulate demand for electric vehicles in the country, will now be offered on the ex-factory price of electric four-wheelers and e-three wheelers. Their ex-showroom price.
Ex-factory prices of vehicles do not include GST, freight and dealer margin.
The announcement was made in a gazette notification on Friday. There is only more than one and a half months left for the FAME-II policy to end on March 31.
Dr Hanif Qureshi, additional secretary, department of heavy industries, told Mint that the move will be effective immediately on all fresh sales, and not retrospectively.
He said the amendment to the scheme is being made to address differences in ex-showroom price of vehicles in different states and to treat all vehicle segments equally in the policy, as the decision to calculate incentives on ex-factory prices was taken earlier. has already been taken. Made in 2023 in case of two-wheelers.
“The reason for doing this is that the same rules should apply across all categories of vehicles that we promote, and we had changed the ex-factory price criteria for two-wheelers only in 2023. Secondly, all ex- Uniformity of factory prices will make it easier for OEMs in India to file their claims,” Qureshi told Mint.
Meanwhile, representatives of automobile companies said the move is surprising and said they will now have to publish revised pricing for the vehicles.
“The notification does not make it clear whether the new ex-factory price norms will be applicable to vehicles registered or sold from February 9 onwards. Since many dealers have billed the vehicles with the assumption of a fixed subsidy amount, we then have to If there is any change in terms of the amount then we can make a claim,” a senior industry executive told Mint on the condition of anonymity.
FAME II subsidy till end of March or till funds become available: Govt
The Ministry of Heavy Industries on Friday said the subsidy under FAME will be eligible for e-vehicles sold till March 31, 2024 or till funds are available, whichever is earlier.
In a statement, the ministry said the second phase of its flagship scheme was “fund- and duration-limited”.
“It is hereby informed that this scheme is a fund and period limited scheme i.e. subsidy for demand promotion for E-2W, E-3W and E-4W sold till March 31, 2024 or till funds are available, whichever Yes, she will be eligible first,” it added, according to PTI.
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