Understanding the FAME 2 Subsidy Program: Requirements, Advantages, and How to Apply

Last Updated : Sept. 15, 2023, 4:41 p.m.

The Indian government has been encouraging the use and purchase of electric vehicles to solve the growing pollution issues from diesel and petrol automobiles. The FAME subsidy is one of these projects, which was first implemented in 2015. It is currently in its second phase, named FAME 2 subsidy.

Everything concerning the FAME phase II or FAME 2 subsidy, including the requirements, amount, and eligibility, has been covered in this blog,

FAME 2 Subsidy: What is It?

The first iteration of FAME (Faster Adoption and Manufacturing of Electric Vehicles) was released in April 2015, and Phase II was introduced in April 2019. By making electric and hybrid cars more accessible and inexpensive through the financial assistance provided under this subsidy programme, it aims to encourage the purchase of these vehicles. The FAME 2 subsidy was initially intended to last three years and expire on March 31, 2022, but the government has opted to prolong it until March 31, 2024.

FAME 2 Electric Scooter Subsidy

Throughout the subsidy, Phase II of this programme is intended to support 1 million electric two-wheelers. A government subsidy of Rs 20,000 will be given to registered vehicles of the mentioned number. The plan is only open to two-wheelers that can travel 80 km on one battery charge and reach a speed of at least 40 km/h. This is the same as it was in its previous phase. In addition to financing the purchase, the government wants to put in 2700 charging stations across the nation. Metro stations, mountainous states, advanced cities, and even motorways will be included. Electric two and three-wheeler vehicles are qualified for substantial monetary benefits through the FAME 2 subsidy programme.

FAME 2 Subsidy Qualifications

You must meet the requirements below to be qualified under FAME 2:

• You must own a legitimate ID.
• You have probably never requested a FAME 2 subsidy for an electric two-wheeler.
• The registration name must precisely correspond to the registration name on the ID confirmation.

Amount of the FAME 2 Subsidy

To encourage producers and consumers to adopt electric mobility, the amount of subsidies awarded under FAME 2 varies depending on the type of electric vehicle and its features.

The government has boosted the FAME 2 subsidy amount from Rs. 10,000 per kilowatt hour (kWh) to Rs. 15,000 per kWh, subject to a limit of 40% of the vehicle cost. However, the government just announced that the subsidy margin had been cut again. With this latest revelation, the upper threshold will only cover a maximum of 15% of the price of an electric vehicle beginning on June 1, 2023. For instance, the most subsidy you could have received for purchasing an electric scooter before June 1 was Rs. 40,000. The subsidy payment has been set at Rs. 15,000 beginning on June 1. Due to this, the cost of electric vehicles has jumped by roughly 25%.

How to Apply for FAME 2 Support?

The actions below must be taken to receive FAME 2 subsidy benefits:

• Visit the Ministry of Heavy Industries’ official website.
• Go to the FAME India Phase II option now and select it.
• When you click the button, a form that you must complete will be displayed.
• Click ‘Submit’ after completing the form as directed.
• You can take advantage of the FAME 2 subsidy once your supporting documentation and the data you filled out have been confirmed.

Companies Accepted For FAME 2 Subsidies

With the subsidies, more than 50 enterprises received permission. They all fit into one of the next two categories.

• Neither of them builds electric vehicles.
• They provide infrastructure for electric car use otherwise.

Popular companies on this list include TVS Motors, Tata Motors, and Ola Electric Technologies.

Consumer Advantages of FAME 2 Subsidy

Consumers can purchase electric automobiles at a lower cost thanks to the Central Government’s FAME 2 subsidy. This encourages users to switch from gasoline-powered vehicles to electric ones. Additionally, this enables them to contribute to the cause of reducing fossil fuel consumption and pollution prevention. The agreement has been made much sweeter by the introduction of several state governments’ electric vehicle subsidies. In states like Gujarat and Maharashtra, you can benefit from additional discounts in addition to the FAME 2 subsidy if you purchase an electric vehicle.

Last Date for Applications

The deadline for application submission is an important component of every government programme. The deadline for submitting an application for FAME 2 subsidies, it should be noted, is subject to change. It is crucial for businesses and consumers to stay up to date with the most recent changes and announcements from governmental organisations and the FAME 2 website to make sure you do not lose the chance to profit from this programme.

Conclusion

Considering the limited supply of fossil fuel on earth, switching from petrol and diesel-powered cars to electric ones has become urgently necessary. Despite the obstacles this approach has faced due to many variables, including COVID-19, analysts think consumers would accept this shift favourably. The Government of India has chosen to extend the programme till 2024 in part because of COVID-19. So, if you were thinking about purchasing an electric vehicle, perhaps the time is now.

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