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25 Feb 2023
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With rising temperatures every year, we all witness the effects of global warming. Extreme heatwaves, unseasonal rains, deadly floods, and sudden famines are some of its indicators. While global conventions and discussions are being held to tackle this problem, those solutions would take time to get fully implemented. However, there are immediate solutions that can be undertaken by you. India is one of the growing markets for electric vehicles, especially electric bikes and scooters. While a majority number of the two-wheelers you might find on Indian roads are fuel-powered, there has been a rise in the number of people switching to electric two-wheelers. To drive this initiative, the Indian government has introduced various schemes. The Electric Vehicle Policy of India is one such scheme that specifies subsidies to electric vehicle manufacturers and buyers. Given below is more information related to this policy and the subsidies offered.
An electric vehicle (EV) is a type of vehicle that runs on battery power instead of fossil fuel such as petrol or diesel. In a conventional vehicle, the internal combustion engine (ICE) uses fuel to power itself and the vehicle. In EVs, electric batteries are used to power the vehicle. The engine used in EVs has zero emissions, reducing the amount of pollution generated. Fully electric vehicles and Hybrid electric vehicles are a few types of EVs.
As mentioned earlier, to electrify public and private transportation in India, the Indian government has laid a roadmap. Among the various things that are introduced in the Electric Vehicle Policy of India is the Faster Adoption and Manufacture of Electric and Hybrid Vehicles in India also abbreviated as the FAME scheme. Under this scheme, manufacturers, suppliers and consumers receive incentives.
Launched in 2015, the FAME scheme was devised to drive the production and sales of electric vehicles in India. As the EV market in India is dominated by two- and three-wheelers, the manufacturers got heavy incentives. The first phase of the FAME scheme was launched back in 2015 and ended on 31st March 2019. The second phase of the scheme was launched in April 2019 and will end on 31st March 2024.
The following were the features of the first phase:
The following are the features of the second phase:
In the second phase of the FAME scheme, different states have provided subsidies for electric two-wheelers. Given below is the list of states that are providing 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% |
*Policy yet to be approved in Bihar and Punjab Take this example: If you want to buy an electric scooter in the state of Maharashtra, a minimum subsidy of Rs.5000 is given. So, if the cost of the scooter is Rs.1,15,000, the subsidy would bring down the cost to Rs.1,10,000. If the maximum subsidy of Rs.20,000 is given, the cost would come down to Rs.90,000.
Given below are the steps behind the working of the FAME subsidy:
Apart from the cost reduction due to the subsidy, you also get an exemption from the road tax. This helps you in further saving money. The other benefit is the affordable bike insurance for your electric two-wheeler. The prices are based on the capacity of your two-wheeler. The lower the capacity, the lower would be the premiums. You can use the two wheeler insurance premium calculator to get a quote for the two-wheeler you are looking to buy. *
The policy and the FAME scheme can benefit you and the environment when you purchase an electric two-wheeler. If you wish to know about bike insurance prices for your preferred brand, you can get in touch with your nearest insurance advisor. *Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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