Probe against 17 EV companies nears completion; government to resume due subsidies soon

With the probe now getting over, the government will start disbursing subsidies to players against whom no violation has been found. However, against companies like Hero Electric and Okinawa where there has been a violation of localisation criteria, the subsidy will continue to be on hold.

There have also been stakeholder consultations with the ministry of heavy industries on subsidy support for electric two-wheelers under the FAME-II scheme.

Rs 2,000 crore which had been allotted for electric two-wheelers is nearing exhaustion and the industry is seeking additional support under the Rs 10,000 crore allocation.

CNBC-TV18 learns that the government could soon invest an additional Rs 1,500 crore but with a reduced subsidy allocation per vehicle.

So from the current 40 percent of the vehicle cost or Rs 15,000 per kilowatt hour, the subsidy support per vehicle could come down to Rs 10,000 per kilowatt hour or 15 percent of the vehicle cost. A final decision from the government is awaited.