Electric 2-wheelers may need more domestic value addition for subsidy

The EMPS replaced the FAME-II scheme, where auto companies were provided Rs 11,500 crore as subsidy

In a move that could support companies looking to raise their value addition and reduce imports, the government is learnt to be considering increasing the eligibility condition of domestic value addition (DVA) in electric two-wheelers for subsidy under the new Electric Mobility Promotion Scheme (EMPS), provided it is extended beyond July 31. The heavy industries ministry is expected to seek an extension of the scheme.

Under the existing rule, companies must have at least 50 per cent localisation to qualify for the subsidy. While the government is looking at half-yearly audits of companies to ensure they comply