We all know how global warming affects our environment. Plus, with fuel prices regularly rising, people are shifting their interest toward electric vehicles. And because of this, India has become one of the growing markets for Electric Scooter.
The government of India has taken several initiatives and started subsidy schemes to promote electric scooters and bikes. Below is detailed information about state subsidies on two-wheeler vehicles in India.
An electric scooter is an environmentally friendly type of scooter that works on an electric motor and rechargeable battery. It’s similar to regular scooters but runs on electricity instead of fuel. You can effortlessly charge e-scooters by connecting them to an electric socket, making them an affordable means of transportation.
So, the Indian government is promoting electric vehicles now. They’ve devised this roadmap to get more electric vehicles on the streets. To make EVs more popular, the Government of India has started a FAME scheme (Faster Adoption and Manufacturing of Electric Vehicles) that provides various incentives for EVs. It means consumers can get subsidies when they buy an electric vehicle.
This scheme aims to start replacing petrol-powered vehicles with electric ones. They want people to choose electric bikes, scooters and cars instead of ones that use petrol or diesel. Giving out incentives makes electric vehicles more affordable, too.
It’s an excellent initiative to help clean up transportation and reduce city pollution. We will start seeing more electric vehicles on the roads in the upcoming year!
The FAME Scheme was started back in 2015. The first part of the FAME plan went from 2015 until the end of March 2019. Then, they launched the second phase beginning in April 2019. This new phase will keep going until the end of March 2024.
FAME Scheme made EVs more affordable to buy. The government is also working on charging stations, so getting around in electric rickshaws and scooters will be easier.
The following were the features of the first phase:
In the first phase of the FAME scheme, the government tried to boost demand for electric vehicles and focus on improving battery tech.
During that first phase of the FAME scheme, the government put in 427 charging points around the country. Getting those stations in place will help encourage more people to buy EVs.
Features of the second phase of the FAME Scheme:
Focus on electrification of public transport.
The government set aside Rs.10 000 crores for the overall budget.
For electric scooters and bikes, anyone who registers one will get a rebate of 20,000 rupees. They hope to give out this incentive for 10 lakhs of electric two-wheelers.
In the second phase of the FAME scheme, different states offer subsidies for electric vehicles. Here’s a list of states giving out subsidies on two-wheelers:
| State | Subsidy (Per kWh) | Maximum Subsidy | Road Tax Exemption |
| Maharashtra | Rs.5000 | Rs.25,000 | 100% |
| Gujarat | Rs.10,000 | Rs.20,000 | 50% |
| West Bengal | Rs.10,000 | Rs.20,000 | 100% |
| Karnataka | – | – | 100% |
| Tamil Nadu | – | – | 100% |
| Uttar Pradesh | – | – | 100% |
| Bihar* | Rs.10,000 | Rs.20,000 | 100% |
| Punjab* | – | – | 100% |
| Kerala | – | – | 50% |
| Telangana | – | – | 100% |
| Andhra Pradesh | – | – | 100% |
| Madhya Pradesh | – | – | 99% |
| Odisha | NA | Rs.5000 | 100% |
| Rajasthan | Rs.2500 | Rs.10,000 | NA |
| Assam | Rs.10,000 | Rs.20,000 | 100% |
| Meghalaya | Rs.10,000 | Rs.20,000 | 100% |
*The policy has yet to be approved in Bihar and Punjab.
If you’re wondering how the subsidy works under that FAME program, you first need to check if the scooter you want is part of the scheme. You will only get benefits if the brand is registered for FAME subsidy.
Next, ask the dealer how much the subsidy will be for that particular scooter model you’re considering purchasing. They’ll give you the discounted price upfront. When you buy, the dealer sends all the paperwork to the scooter’s manufacturer so they can file for the subsidy amount. Then the manufacturer forwards it to this board called the NAB that oversees the whole FAME thing.
Once everything checks out, the NAB deposits the subsidy cash with the manufacturer. Then, finally, the manufacturer passes the money on to the dealer. It’s a pretty involved process but worth saving significant money.
Get the benefits of subsidies for electric scooters in India. It’s great to see all the different initiatives by the government to help more people make the switch to EVs. No wonder electric vehicle sales are taking off. India will lead the pack globally in electric vehicle use in upcoming years.
