The FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India) was first introduced in 2011. Then, as per the adoption of electric vehicles through the years, it was evaluated. Going by the results, the Government of India extended the scheme in its second phase, and the FAME II came into existence. It was implemented for a duration ranging from 1 April, 2019 to 31 March, 2023.
On further analysis, the government stretched the FAME II scheme’s tenure by another year, and it can now be availed till March 2024. Initially, a total outlay of Rs. 10,000 crore was allocated in this scheme for four-wheelers, three-wheelers, and two-wheelers. Now, 10 lakh two-wheelers can be covered under this plan, with the subsidy amount set to Rs. 15,000 per kWh of the battery capacity. For reference, the Ather 450X has a battery capacity (usable) of 3.7kWh, which translates to an incentive of Rs. 55,500. That said, the FAME II subsidy amount for all the buyers is discounted during the purchase and cannot be reimbursed manually.
As of now, out of the entire allotted amount, Rs. 5,172 crore are reserved for FY 2024 to push electric mobility further throughout the country. The awareness and implementation of EVs in metro cities are comparatively easier considering the availability of infrastructure, technology, and the need (thanks to the rising fuel costs). Meanwhile, the rural areas require the development of infrastructure and the supply of necessary tech, including 24 hours of electricity.
For any two-wheeler to be eligible for the subsidy, it has to meet the set criteria. And here are the conditions:
- Offers a minimum range of 80km
- Has a top speed of at least 40kmph
- Must be localised to a certain extent
Apart from the FAME II subsidy provided by the central government, various state governments provide an additional subsidy too. It varies for every state and is allotted on the basis of the battery capacity, or a fixed amount is set for every model. Unlike the FAME II benefits, the state subsidy has to be reimbursed post the purchase. For this purpose, buyers need to submit their Aadhar Card details to the dealer with their phone number and bank account linked to it. The subsidy amount is then transferred to the owner.
The FAME II scheme has aided in scaling EV adoption so far. However, the amount is finite, and the manufacturers will need to find an alternate method to make their products affordable at the factory level.
