FAME II Subsidy Scheme for Electric Vehicles in India
The Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme is the Indian government's flagship initiative to promote electric vehicle adoption. Launched in April 2019 with a budget of โน10,000 crore, FAME II provides direct purchase subsidies to buyers of electric two-wheelers, three-wheelers, four-wheelers, and buses. The scheme has been instrumental in making EVs more affordable for Indian consumers.
FAME II Subsidy Structure
FAME II provides a demand incentive (subsidy) based on the battery capacity of the electric vehicle. The subsidy rate was enhanced in June 2021 to โน15,000 per kWh of battery capacity for electric two-wheelers, with a cap of 40% of the vehicle's cost. For electric four-wheelers, the subsidy is โน10,000 per kWh, capped at โน1.5 lakh.
- Electric two-wheelers: โน15,000 per kWh, cap 40% of vehicle cost
- Electric three-wheelers: โน10,000 per kWh
- Electric four-wheelers: โน10,000 per kWh, cap โน1.5 lakh
- Electric buses: subsidy provided to state transport undertakings
- Subsidy is applied at the point of sale by the dealer
- Only vehicles with advanced battery chemistry (lithium-ion etc.) qualify
Eligibility Criteria
Not all electric vehicles qualify for FAME II. The vehicle must be manufactured by a company registered in India and must meet minimum technical requirements including range, top speed, and energy efficiency. The battery must be of advanced chemistry (lithium-ion, etc.) and the vehicle must be sold by an authorized dealer.
- Vehicle must be in the FAME II approved model list
- Manufactured or assembled in India by a registered company
- Minimum range requirements: 80 km for two-wheelers and 150 km for four-wheelers
- Minimum top speed: 40 km/h for two-wheelers and 70 km/h for four-wheelers
- Battery must use advanced chemistry (lithium-ion or equivalent)
- Must be purchased from an authorized dealer with a valid GST invoice
How to Claim FAME II Subsidy
The subsidy is applied directly at the time of purchase by the dealer, so you do not need to apply separately. The dealer shows the subsidy as a discount on the invoice. The dealer then claims reimbursement from the government. Check the FAME India portal for the list of approved vehicles and authorized dealers.
In addition to the central FAME II subsidy, many states offer additional subsidies that stack on top. For example, Delhi, Gujarat, Maharashtra, and Karnataka offer state-level EV subsidies that can further reduce the purchase price significantly.
FAME II Subsidy Examples
| Vehicle Type | Battery Size | Approximate Subsidy |
|---|---|---|
| Electric scooter (2 kWh) | 2 kWh | โน30,000 |
| Electric scooter (3 kWh) | 3 kWh | โน45,000 |
| Electric car (30 kWh) | 30 kWh | โน1,50,000 (capped) |
| Electric three-wheeler (5 kWh) | 5 kWh | โน50,000 |
Key Takeaways
- FAME II provides โน15,000 per kWh subsidy for electric two-wheelers capped at 40%
- Electric four-wheelers get โน10,000 per kWh capped at โน1.5 lakh
- Subsidy is applied directly at the dealer โ no separate application needed
- State subsidies stack on top of FAME II for even greater savings
- Only vehicles on the FAME II approved list qualify for the subsidy
Frequently Asked Questions
How do I check if an EV qualifies for FAME II subsidy?
Visit the FAME India portal (fame2.heavyindustries.gov.in) and check the list of approved vehicle models. You can also ask the dealer directly โ any FAME II eligible vehicle will show the subsidy amount on the price sheet.
Do I need to apply separately for the subsidy?
No. The FAME II subsidy is applied as a direct discount on the vehicle's on-road price by the authorized dealer at the time of purchase. You pay the reduced price, and the dealer claims the subsidy from the government.
Can I get both FAME II and state EV subsidy?
Yes, FAME II is a central government scheme, and state subsidies are separate. Both can be availed simultaneously, sometimes reducing the effective price by โน50,000-โน1,00,000 or more for electric two-wheelers.
Conclusion
FAME II has made electric vehicles significantly more affordable in India and is a key driver of EV adoption. Combined with state subsidies and lower running costs, the effective cost gap between electric and petrol vehicles has narrowed dramatically. Check the FAME India portal for eligible models before making your purchase decision.
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