FAME-II incentives for electric vehicles to be offered on ex-factory prices

The ministry of heavy industries on Friday said that that FAME-II incentives, which are designed to encourage demand for electric vehicles in the country, will now be offered at the ex-factory price of electric four-wheelers and e-three wheelers, instead of their ex-showroom price.

The announcement was made in a Gazette notification on Friday. ((Ramesh Pathania / Mint Archive))
The announcement was made in a Gazette notification on Friday. ((Ramesh Pathania / Mint Archive))

The ex-factory prices of vehicles do not include GST, freight, and dealer margins.

Experience Delhi’s rich history through a series of heritage walks with HT! Participate Now

The announcement was made in a Gazette notification on Friday. It comes just over a month and a half left before the FAME-II policy is to end on March 31.

Dr Hanif Qureshi, additional secretary, heavy industries, told Mint that the move will be effective immediately on all fresh sales, and not retrospectively.

He said the revision in the scheme was being made to address the differences in ex-showroom pricing of vehicles in different states and to also treat all vehicle segments at par in the policy, as the decision to calculate incentives on ex-factory prices was already made in the case of two-wheelers in 2023.

“The reason this has been done is because similar rules should operate in all the categories of vehicles we incentivize, and we had changed the criteria to ex-factory price for two-wheelers in 2023 itself. Secondly, uniformity of ex-factory prices all over India will make it easier for OEMs to file their claims,” Qureshi told Mint.

Meanwhile, representatives of automobile companies said that the move comes as a surprise and added that will now have to publish revised pricing for vehicles.

“The notification doesn’t clarify whether the new ex-factory price criteria will be applicable on vehicles registered or vehicles sold from 9 February. Since many dealers have billed vehicles with the assumption of a certain subsidy amount, we will have to re-calculate if anything changes in terms of the amount we can claim,” a senior industry executive told Mint on condition of anonymity.

FAME II subsidies till March-end or until funds are available: Govt
 

On Friday, the ministry of heavy industries said that subsidies under FAME will be eligible for e-vehicles sold till March 31, 2024 or till the time funds are available, whichever is earlier.

In a statement, the ministry that the second phase of its flagship scheme was “fund- and term-limited”.

“It is hereby informed that the scheme is fund and term limited scheme i.e. the subsidies for demand incentive will be eligible for e-2w, e-3w and e-4w sold till March 31, 2024 or till the time funds are available, whichever is earlier,” it added, according to PTI.

Read More

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Verified by MonsterInsights