DECEMBER, 20249Buyers of cargo electric three-wheelers (e-3W) may no longer benefit from government subsidies under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme for this fiscal year, as the subsidy targets have already been met shortly after the scheme's launch. The Ministry of Heavy Industries (MHI) had set a goal to incentivize 80,546 large e-3W (L5 category) units for 2024-25, but sales have surpassed this target, reaching over 82,000 units. According to official data, 79,974 e-3W sales were reported as of November 7, with companies expected to submit the necessary documents to claim subsidies within the next three months.Similarly, sales of electric two-wheelers (e-2W) are nearing the scheme's saturation limit of one million units for the fiscal year, with eligible manufacturers reporting sales of over 690,000 units. This reflects almost 70 percent of the targeted subsidy allocation, indicating that the scheme is quickly approaching its cap for e-2Ws as well.On the other hand, sales of smaller e-3W vehicles, such as e-rickshaws and e-carts, remain significantly below targets, with only 1,214 units sold against a goal of 43,371 units for the current fiscal year.The PM E-Drive scheme, launched on October 1, 2024, replaced the earlier Faster Adoption and Manufacturing of Electric Vehicles (FAME) initiative, which concluded on March 31, 2024. This new scheme is designed to boost the adoption of locally manufactured EVs by offering demand incentives for categories such as e-2Ws, e-3Ws, e-ambulances, and e-trucks, alongside grants for capital asset creation, including e-buses, charging station networks, and testing agency upgrades. Sales under the previous Electric Mobility Promotion Scheme 2024 (EMPS 2024) have been absorbed into the PM E-Drive initiative. TOP STORIESGAS COMPANIES CONSIDERING LNG IMPORTS AS GOVERNMENT DROPS CNG PRICESCity gas companies like Indraprastha Gas Ltd (IGL), Adani Total Gas Ltd, and Mahanagar Gas Ltd (MGL) are considering a hike in CNG prices following a second cut in the supply of low-cost natural gas from old fields within a month. The supply cuts affect natural gas sourced from fields across the Arabian Sea and Bay of Bengal, which is used to produce CNG for vehicles and piped cooking gas for households. Despite concerns, the government emphasizes the need for balanced profitability that does not excessively burden consumers.On November 16, the government reduced the supply of these cheaper inputs to city gas retailers by 20 percent, adding to a 21 percent reduction implemented on October 16. These cuts have forced retailers to explore costlier alternatives like gas from new wells or imported LNG, raising concerns about profitability.City gas retailers, including IGL, which serves the national capital region, MGL in Mumbai, and Adani Total Gas in Gujarat and other regions, have highlighted potential profitability challenges in their regulatory filings, signaling possible price increases. However, officials from the Ministry of Petroleum and Natural Gas argue that the companies operate on healthy profit margins and can absorb the increased input costs without passing them on to consumers. For instance, IGL reported a net profit of 1,748 crore on a revenue of nearly 16,000 crore in the fiscal year ending March 31, 2024, reflecting an 11 percent margin, while MGL posted a 1,300 crore profit on 7,000 crore revenue, yielding a similar margin. E-3W SCHEME HITS 70 PERCENT SUBSIDY RECIPIENTS, LIMIT APPROACHING FOR E-2WS
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