Archive · 26 Dec 2025
Government to exhaust ₹857-crore subsidy for larger e-rickshaws early
The Indian government is running out of money for a program that helps people buy bigger electric rickshaws (called L3 e-rickshaws) much earlier than planned.
This is because most of these rickshaws don't meet the rules for getting the government's help.
Since the program started, only about 4,600 of these rickshaws have gotten the subsidy, which is a very small number compared to how many have been sold.
The government had set aside ₹857 crore for this, but it looks like that money will be used up faster than expected.
Government to exhaust ₹857-crore subsidy for L3 e-rickshaws three months early in FY25.
Only 4,600 L3 e-rickshaws have been subsidised, just 0.55% of the 830,000 sold.
Most L3 e-rickshaws fail to meet localisation requirements for subsidies.
Subsidy scheme launched in FY25, but uptake has been low due to strict criteria.
Government may need to reassess subsidy criteria or allocation for future schemes.
- Who
- Government of India
- What
- Exhaustion of subsidy for larger e-rickshaws (L3 category)
- When
- Three months early in FY25
- Where
- India
- Why
- Most L3 e-rickshaws fail to meet localisation requirements for subsidies
- Subsidy Amount
- ₹857 crore
- Subsidy Exhaustion
- Three months early
- Subsidised L3 e-rickshaws
- 4,600
- Total L3 e-rickshaws sold
- 830,000
- Subsidy Percentage
- 0.55%