Check out the Government Subsidy for Electric vehicles to buy electric vehicles in India. The State Government also provides the EVs incentives. In this article, we will also cover the Central government subsidies for electric vehicles in India.
Indian Government wants to cut 45% of carbon emissions by 2030. To complete this goal Central and State Governments provide Government subsidy for electric vehicles at their level.
Central Government Subsidy For Electric Vehicles (FAME)
As I told you above Indian government wants to cut 45% of carbon emissions by 2030, to complete this task Indian Government working on it at its level best. To achieve this goal Government working fast to stop the usage of petrol and diesel vehicles and turn them towards electric vehicles. But for many people Getting access to expensive Electric vehicles is a difficult task.
So the government provides a subsidy directly and indirectly to those people and also introduced a scheme called Faster Adoption and Manufacturing of Electric Vehicles (FAME). FAME was formed under the National Mission of Electric Mobility 2011/ National Electric Mobility Mission Plan 2020 which was unveiled in 2013.
Faster Adoption and Manufacturing of Electric Vehicles Scheme
For Fame, the Central Government introduced this in two phases. Which looks something like this:
- In the first phase, the registration fee for purchasing Electric Vehicles has been reduced to zero.
- in the second phase, the GST was reduced from 12 % to 5% on electric vehicle purchasing.
The first phase (FAME |) was scheduled for 2 years from 1 APRIL 2015 to 2017 but after 2017, it was extended for a further two years to 2019. During this period, the fund was distributed to vehicles with different categories like Mild Hybrid, Plug-in Hybrid, Strong Hybrid, pure electric technology, and battery specification.
359 crore amount was spent on 137 models of electric vehicles from 2015 to 2019. Moreover, 520 charging stations were also constructed in cities including Bangalore, Chandigarh, Jaipur, and Delhi. Under this, the Indian government invested ₹322 crore in electric transportation, purchasing 425 new buses for cleaner urban travel in various states of India.
The budget allocated for this phase was 10,000 crores for 7000 electric buses (e-bus), 5 Lakh electric 3-wheelers (e-3W), 10 Lakh electric 2-wheelers (e-2W), 55,000 electric 4-wheeler passenger cars (including strong hybrid) (e-4W), and including electric charging stations for 3 years from 31 March 2019 – 31 March 2022 according to plan.
This phase was extended for another 2 years up to 2024 after being successful. During this period, the two-wheeler subsidy increased from Rs.10,000 per kWh to Rs. 15,000 per kWh. The incentive cap was revised from a fixed amount of Rs. 10,000 per kWh to a flexible cap of 40% of the ex-showroom price of the vehicle.
This scheme was only applicable to electric vehicles with advanced chemistry batteries. These batteries typically offer higher energy density and longer range compared to traditional lead-acid batteries. The scheme also had minimum technical criteria that participating vehicles needed to meet, ensuring a certain level of quality and performance.
Electric vehicles eligible for this scheme had to be registered as motor vehicles under the Central Motor Vehicle Rules (CMVR). The incentives offered under this scheme are:
|Total Approximate incentives
|Approximate Size of Battery
|Rs.15,000 per kWh
|Rs.10,000 per kWh
|Rs.10,000 per kWh
|Rs.20,000 per KWH
|Rs.20,000 per kWh
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