Fame 2 Subsidy: Eligibility, How To Claim Subsidy, Amount, Last Date, Benefits

With the rising pollution concerns from diesel and petrol vehicles, the Government of India has been taking initiatives to promote purchase and use of electric vehicles as a solution. One of these such initiatives is the introduction of the FAME subsidy, which is now in its second phase, hence the name FAME 2.  

In this blog, we have covered everything about FAME subsidy phase II, including the eligibility, criteria and the amount. Read the blog for details.

What is FAME 2 Subsidy?

Faster Adoption and Manufacturing of Electric Vehicles (FAME) was first introduced in April 2015, and  Phase II was launched in April 2019. It aimed to push purchase of electric and hybrid vehicles by making them more affordable through financial support being offered under this subsidy scheme. FAME 2 subsidy was originally a 3-year plan and was to end on 31st March 2022, however, the government has extended the FAME 2 Subsidy till 31st July 2024.

FAME 2 Subsidy on Electric Scooter

Phase II of this subsidy aims to support 1 million electric two-wheelers during the tenure of the subsidy. The said number of registered vehicles will get a subsidy of Rs. 20,000 each from the government. Just like its last phase, only those two-wheelers that can cover an 80 km distance on a single charge and can get a speed of at least 40 km/hr are eligible for the scheme. 

In subsidising the purchase, the government is also aiming to install 2700 charging stations across the country. It will include locations such as metro stations, hilly states, smart cities, and even highways.

FAME 2 Subsidy Eligibility Criteria

To be eligible under FAME 2, you must be an individual who meets the following conditions:

• You must have a valid ID proof.
• You must have never claimed a FAME 2 subsidy before for electric two-wheelers.
• The name provided during the registration must exactly match the name on the ID proof.

FAME 2 Subsidy Amount/FAME 2 Subsidy Reduction

The FAME 2 subsidy amount, in the beginning, was Rs. 10,000 per kilowatt hour (kWh) which the Government later increased to Rs. 15000 per kWh subject to a maximum of 40% of the vehicle cost. However, a recent announcement from the Government has again reduced the subsidy margin. With this new announcement, the upper cap has been brought down to a maximum of 15% of an electric vehicle’s cost starting 1st June 2023. 

For example, if you buy an electric scooter before 1st June, the maximum subsidy amount that you would have got was Rs. 40,000. However, after 1st June, the subsidy amount has been capped at Rs. 15,000. This has increased the electric vehicle cost by almost 25%.

How to Claim FAME 2 Subsidy?

To claim benefits of FAME 2 subsidy, you need to follow these steps:

1. Visit the official website of the Ministry of Heavy Industries. 
2. Now, navigate to the FAME India Phase II option and click on it.
3. Once you click on the button, you will be redirected to a form that you need to fill-up.
4. Once you fill out the form by following the instructions, click on ‘Submit’.
5. Once your documents and the filled-out information are verified, you can avail the benefits of the FAME 2 subsidy.

Companies Approved For Subsidy Under FAME 2

More than 50 companies got approval under the subsidy. All of them fall in either of the two following categories.

• They are either electric vehicle manufacturers.
• Otherwise, they are electric vehicle infrastructure providers.

Some popular names in this list include Ola electric technologies, Tata Motors, TVS Motors etc.

Benefits for Consumers in FAME 2 Subsidy

The FAME 2 subsidy by the Central Government allows consumers to buy electric vehicles at a cheaper price. This encourages consumers to shift towards electric vehicles over fuel-powered vehicles. This also allows them to play their part in protecting the environment from pollution and encouraging reduced usage of fossil fuels.

Additionally, several state governments have introduced their own subsidy for electric vehicles, which has sweetened the deal even further. So, if you buy electric vehicles in states like Gujarat and Maharashtra, you can avail benefits of additional subsidies over the FAME 2 subsidy.

Final Word

With a limited amount of fossil fuel available on earth, transition from petrol and diesel-run vehicles to electric vehicles has become an urgent need of the hour. Even though several factors such as COVID-19 have created hurdles in this plan, experts believe consumers are welcoming this change positively. 

It is also because of COVID-19 that the Government of India has decided to extend the scheme till 2024. So if you are planning to buy an electric vehicle, maybe now is the time. This scheme is available not just for electric two-wheelers but also three and four-wheelers including hybrid and public passenger vehicles.