Modified FAME II Subsidy To Provide A Shot In The Arm For Electric 2-Wheelers

Indian government has decided to revise the FAME 2 scheme with an aim to make electric 2-wheelers more affordable in India.

Phase 2 of the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) was first introduced in 2019 with an outlay of Rs. 10,000 crores for a period of 3 years from April 2019.

By way of rolling out the scheme, the Centre aims to support 10 lakh electric 2-wheelers, apart from thousands of passenger cars and buses.

According to the latest amendment to the FAME 2 scheme, subsidy benefit for electric 2-wheelers has been increased by 50 percent to Rs. 15,000/- per kWh. Earlier, the subsidy amount was capped at Rs. 10,000/- per kWh.

This FAME 2 scheme subsidy will be applicable only for electric 2-wheelers that meet preset eligibility criteria which include 80 km minimum range and 40 km/hr minimum top speed.

Also, the Department of Heavy Industry has raised the cap for incentives meant for electric 2-wheelers from the earlier 20 percent of the cost of a vehicle to 40 percent now.


However, the revised FAME 2 subsidy benefit is currently limited to electric 2-wheelers and the government is expected to make a similar announcement to electric passenger cars as well.

This is among many moves proposed by the government to boost sales of EVs in India. Only recently did the Centre propose waiver of registration fee for EVs.