What is the FAME subsidy?
Here is the table of the different states that are providing subsidies on two-wheelers, including:
State
|
Subsidy (per kWh)
|
Maximum subsidy
|
Road tax exemption
|
Gujarat
|
Rs.10,000
|
Rs.20,000
|
50%
|
Maharashtra
|
Rs.5000
|
Rs.25,000
|
100%
|
Karnataka
|
-
|
-
|
100%
|
West Bengal
|
Rs.10,000
|
Rs.20,000
|
100%
|
Tamil Nadu
|
-
|
-
|
100%
|
Bihar*
|
Rs.10,000
|
Rs.20,000
|
100%
|
Odisha
|
NA
|
Rs.5000
|
100%
|
Punjab*
|
-
|
-
|
100%
|
Uttar Pradesh
|
-
|
-
|
100%
|
Kerala
|
-
|
-
|
50%
|
Telangana
|
-
|
-
|
100%
|
Madhya Pradesh
|
-
|
-
|
99%
|
Andhra Pradesh
|
-
|
-
|
100%
|
Rajasthan
|
Rs.2500
|
Rs.10,000
|
NA
|
Meghalaya
|
Rs.10,000
|
Rs.20,000
|
100%
|
Assam
|
Rs.10,000
|
Rs.20,000
|
100%
|
How does this subsidy work?
The FAME subsidy works through a process that involves multiple steps:
Eligibility
Check if the electric vehicle you intend to purchase is eligible for the FAME subsidy. The government determines the eligibility criteria and may include factors such as vehicle type, battery capacity, and compliance with technical specifications.
Manufacturer Registration
Ensure that the manufacturer of the electric vehicle you plan to buy is registered under the FAME scheme. Only registered manufacturers can offer the subsidy on electric scooters to the customer.
Purchase Details
Provide the necessary purchase details, such as invoice and vehicle registration documents, to the manufacturer or dealer from whom you buy the electric vehicle.
Subsidy Application
The manufacturer or dealer will forward the purchase details to the FAME scheme’s designated authority. This authority verifies the documents and determines the eligible subsidy amount.
Subsidy Disbursement
On completion of the verification process, the subsidy amount gets credited to the manufacturer or dealer. They, in turn, adjust the electric vehicle’s final price, providing the subsidy benefit to the buyer.
How does this scheme benefit you?
The FAME scheme benefits buyers of electric vehicles in several ways. Firstly, the subsidy reduces the upfront cost of electric vehicles, making them more affordable and competitive with conventional vehicles. Additionally, electric vehicle owners enjoy savings on operating expenses since the cost of electricity is lower than conventional fuel. The scheme also promotes establishing a robust charging infrastructure network, ensuring convenient access to charging facilities for electric vehicle users. By adopting electric vehicles, buyers contribute to reducing air pollution and carbon emissions, creating a cleaner and more sustainable environment.
Conclusion
The Electric Vehicle Policy of India and the FAME scheme play vital roles in accelerating the adoption of electric vehicles. These initiatives provide financial incentives and more. However, you should also consider two-wheeler insurance as its premiums are determined separately. It’s worth exploring potential discounts or special offers provided by insurance companies for electric scooters to ensure you get the best insurance coverage at an affordable cost.