Govt to give Rs. 500 cr to four e-scooter companies under FAME-II scheme

With electric two-wheeler manufacturers agreeing to refund consumers for chargers, the government has decided to release over Rs 500 crore of subsidy under FAME II scheme to four companies — Ola Electric, Ather, TVS and Hero MotoCorp.

Ola is in line to get the highest payout from the ministry of heavy industries, which will be to the tune of Rs 370 crore, followed by around INR 275 crore for Ather. TVS is likely to get upwards of INR 150 crore, while the subsidy bill to be settled for Hero MotoCorp will be INR 28-30 crore, government sources told reporters.

Remaining amount, which adds up to INR 288 crore, will be released once the companies submit details of the reimbursements made by them, the sources said. Ather has the highest amount of reimbursements to make, around INR 140 crore to 95,000 buyers of Ather 450X model of electric two wheeler. Similarly, Ola has to clear a bill of around INR 130 crore to almost 1 lakh buyers of Ola S1Pro before the government releases the funds.

The government had announced the INR 10,000-crore FAME II scheme a few years ago to promote electric vehicles, especially those used for public transport. The scheme, however, ran into trouble with the payment to the companies delayed in the wake of complaints. In this fiscal, the ministry is looking to settle bills of INR 5,000 crore.