The FAME-II Subsidy scheme is designed to expedite the adoption of electric vehicles (EVs) in India by offering demand incentives, fostering the growth of charging infrastructure, and more. Curious about the subsidies available for purchasing an EV under FAME II? Look no further – this comprehensive guide offers complete information on the subject.
Table of Contents
Overview of FAME-II Subsidy Scheme
Launched in 2019, FAME II is the expanded second phase of India’s flagship EV promotion scheme with a Rs 10,000 crore budget and several key features:
- Demand Incentives – Upfront purchase subsidies to lower EV sticker prices for consumers.
- Charging Infra – Support deploying public EV charging stations and equipment.
- Tech Development – R&D grants for EV components manufacturing and indigenous technology.
- Pilot Projects – Demand aggregation initiatives like shared mobility, delivery fleets, etc.
The scheme covers electrification of vehicles across multiple segments, including 2-wheelers, 3-wheelers, 4-wheelers, buses, trucks, 3-wheelers, etc.
FAME-II Demand Incentives for EVs
Here is an overview of the demand incentives applicable for different EV categories under FAME-II:
Electric 2-Wheelers
- Incentive amount: Rs 15,000 per kWh of battery capacity
- Max incentive cap: 40% of vehicle cost or Rs 20,000, whichever is less
Electric 3-Wheelers
- Incentive amount: Rs 15,000 per kWh of battery capacity
- Max incentive cap: 20% of vehicle cost
Electric 4-Wheelers
- Incentive amount: Rs 15,000 per kWh of battery capacity
- Max incentive cap: 20% of vehicle cost
Electric Buses
- Incentive amount: Rs 50,000 per kWh of battery capacity
- Max incentive cap: 40% of vehicle cost
Note: The max ex-factory price caps to qualify for incentives are Rs 1.5 lakhs for 2W, Rs 5 lakhs for 3W, Rs 15 lakhs for 4W and Rs 2 crores for buses.
Read Also: Is There a Subsidy Available For Installing a Home EV Charger?
Subsidy Examples for Popular EV Models
Here are some examples of FAME-II Subsidy incentives available for top-selling electric 2-wheeler, 3-wheeler and 4-wheeler models in India:
Ather 450X Electric Scooter
- Ex-factory price: Rs 1.32 lakh
- Battery capacity: 2.9 kWh
- Subsidy amount: 2.9 x 15,000 = Rs 43,500
Okinawa iPraise+ Electric Scooter
- Ex-factory price: Rs 1.03 lakh
- Battery capacity: 1.63 kWh
- Subsidy amount: 1.63 x 15,000 = Rs 24,450
Piaggio Ape E-City Electric 3-wheeler
- Ex-factory price: Rs 1.97 lakh
- Battery capacity: 1.6 kWh
- Subsidy amount: 1.6 x 15,000 = Rs 24,000
Mahindra Treo Electric 3-wheeler
- Ex-factory price: Rs 2.09 lakh
- Battery capacity: 1.55 kWh
- Subsidy amount: 1.55 x 15,000 = Rs 23,250
Tata Nexon EV Subcompact SUV
- Ex-factory price: Rs 14 lakh
- Battery capacity: 30.2 kWh
- Subsidy amount: 30.2 x 15,000 = Rs 4,53,000
MG ZS EV Compact SUV
- Ex-factory price: Rs 21 lakh
- Battery capacity: 44.5 kWh
- Subsidy amount: 44.5 x 15,000 = Rs 6,67,500
So the savings can range from Rs 20,000-30,000 for 2-wheelers and Rs 2-7 lakh for passenger vehicles under the scheme!
Additional State EV Subsidies
Besides central incentives under FAME-II Subsidy, many states also offer additional demand incentives for EVs purchased and registered locally:
| State | Additional Subsidy |
|---|---|
| Delhi | Rs 5000 for 2W, Rs 7500 for 3W, Rs 10,000 for 4W |
| Maharashtra | 15% of vehicle cost up to Rs 5 lakhs |
| Gujarat | 10% of vehicle cost up to Rs 1.5 lakhs |
| Karnataka | 25% of vehicle cost up to Rs 1.5 lakhs |
| Tamil Nadu | 15% of vehicle cost up to Rs 1 lakh |
So opting for a locally manufactured EV sold in your state can maximize total FAME-II subsidy benefits!
Eligibility Criteria for Claiming Subsidies
To qualify for receiving EV demand incentives under FAME-II Subsidy and state schemes, buyers must meet the following criteria:
- Purchase an EV model qualifying under FAME-II standards
- EV must be domestically manufactured with minimum of 50% local content
- Have an advance subsidy claim filed by EV OEM on the portal
- Should be registered in India and not be resold before 3 years
- Subsidy applicable only for first 200,000 EVs sold till scheme end
- Subsidy capped at 20-40% of vehicle price depending on segment
So carefully review the eligibility and documentation required while claiming your rightful EV subsidy!
How to Apply for FAME-II Subsidy
Here is a step-by-step process for EV buyers to claim subsidies under the FAME-II Subsidy scheme:
Step 1 – Explore eligible EV models and available subsidy amounts in your vehicle segment
Step 2 – Select a suitable EV model from an OEM participating in the FAME-II Subsidy scheme
Step 3 – Pay the full ex-factory price to the dealer without factoring in subsidy at the time of purchase
Step 4 – Dealer files advance subsidy claim on FAME portal before vehicle registration
Step 5 – Register purchased EV with local RTO/DTO within the stipulated time
Step 6 – Upload registration certificate on the portal as proof
Step 7 – Subsidy amount credited directly to buyer’s account within 2-3 weeks
Step 8 – Bank statement received of subsidy credit transfer from FAME trust
So follow the process diligently for smooth sanctioning and disbursal your EV subsidy amount!
Key Takeaways – FAME II Subsidies
To summarize, here are the key highlights of EV subsidies provided under the FAME-II Subsidy scheme:
- Rs 15,000 per kWh – Standard incentive rate applicable for all EVs based on battery capacity
- 40% Max – Maximum subsidy capped at 40% of vehicle cost for 2W and buses
- 20% Max – Maximum subsidy capped at 20% of vehicle cost for 3W and 4W
- State Subsidies – Additional incentives if EV registered in states like Delhi, Maharashtra etc.
- 200,000 Limit – Subsidies are limited to the first 200,000 EVs under the scheme
- Rs 10,000 Crore – Total budget allocated to disburse subsidies till 2024
- Local Content – EV must have minimum of 50% domestic components to qualify
The purchase incentives under FAME II and state subsidies can considerably reduce EV prices and accelerate adoption. Make the most of these savings to go electric!
Recent Developments Regarding FAME-II Scheme
Here are some latest updates regarding India’s FAME-II Subsidy scheme to promote EVs:
- FAME-II Extended – Scheme extended to March 2024 with an increased outlay of Rs 10,000 crores from earlier Rs 10,000 crores.
- Wider Applicability – Eligibility relaxed to now cover 2-wheelers without batteries for swappable models.
- New EV Segments – Incentives to be expanded to cover electric tractors, 3-wheelers with higher capacity and non-swappable 2-wheelers.
- FAME-III Proposed – Government evaluating the scope of the next phase FAME-III scheme with further amendments.
- Incentive Revisions – Demand incentives likely to be modified to link with kWh usage instead of battery capacity.
- GST Cuts – Recommendation to reduce GST on EVs from 5% to 0.5% to boost affordability.
- Additional Funds – Central and state governments are exploring additional outlay for EV adoption from other non-FAME schemes.
The amendments to the FAME-II Subsidy scheme are aimed at fine-tuning incentives based on feedback and market trends to maximize EV uptake. The policy push and reducing EV costs will accelerate mainstream adoption in the coming years.
