Union Minister Nitin Gadkari stated that there is no need for subsidy as customers are choosing Electric Vehicle themselves

While for internal combustion engine-powered vehicles, including hybrids, 28% GST is payable presently, the electric vehicles attract 5% GST.

Before Nitin Gadkari, Union Heavy Industries Minister HD Kumaraswamy had on Wednesday spoken on subsidies. He had said the government hopes to finalize the third phase of its flagship electric mobility adoption scheme FAME in a month or two.

Union Heavy Industries Minister HD Kumaraswamy had said that an inter-ministerial group is working out the inputs received for the scheme and efforts are on to iron out the issues in the first two phases of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles FAME scheme.

The government is already providing subsidy on electric two-wheelers and three-wheelers under the Electric Mobility Promotion Scheme 2024. Under this, the government is providing a maximum subsidy of Rs 10-11 thousand on electric two-wheelers. At the same time, subsidy up to Rs 50 thousand is being given on three-wheelers. The Indian government started a scheme in the year 2015, which actually marked the beginning of Phase I of the Fame subsidy, with the motive of offering a boost for electric vehicles. This scheme started from April 1, 2015, and was for two years initially; however, it was extended up to 31 March 2019 considering the increasing interest among people. In this phase, the funding provided was almost Rs 529 crore.