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Government Subsidies on Electric Vehicles
Written by carandbike team | Updated: June 21, 2022 11:35 IST
State-Wise Subsidies for EV Cars/SUVs
Each state in India has its policy for EV cars/SUVs subsidies. As such, the subsidies may differ from one Indian State to another. The table below demonstrates the various state-wise subsidies for EV cars/SUVs.
State | Subsidy (Per kWh) (INR) | Maximum Subsidy(INR) | Road Tax Discount |
West Bengal | 10,000 | 1,50,000 | 100% |
Bihar | 10,000 | 1,50,000 | 100% |
Assam | 10,000 | 1,50,000 | 100% |
Meghalaya | 4,000 | 60,000 | 100% |
Gujarat | 10,000 | 1,50,000 | 50% |
Maharashtra | 5,000 | 2,50,000 | 100% |
Punjab | Nil | Nil | 100% |
Andhra Pradesh | Nil | Nil | 100% |
Madhya Pradesh | Nil | Nil | 99% |
Telengana | Nil | Nil | 100% |
Tamil Nadu | Nil | Nil | 100% |
Karnataka | Nil | Nil | 100% |
Kerala | Nil | Nil | 50% |
Uttar Pradesh | Nil | Nil | 75% |
Rajasthan | Nil | Nil | NA |
Odisha | NA | 1,00,000 | 100% |
State-Wise Subsidies for EV Two-Wheelers
Just like subsidies on electric cars/SUVs, the states also have policies for EV two-wheelers. As in the previous case, these EV two-wheelers subsidies differ among states. The table below demonstrates the various state-wise subsidies for EV two-wheelers.
State | Subsidy (Per kWh)(INR) | Maximum Subsidy(INR) | Road Tax Discount |
West Bengal | 10,000 | 20,000 | 100% |
Bihar | 10,000 | 20,000 | 100% |
Assam | 10,000 | 20,000 | 100% |
Meghalaya | 10,000 | 20,000 | 100% |
Gujarat | 10,000 | 20,000 | 50% |
Maharashtra | 5,000 | 25,000 | 100% |
Punjab | Nil | Nil | 100% |
Andhra Pradesh | Nil | Nil | 100% |
Madhya Pradesh | Nil | Nil | 99% |
Telengana | Nil | Nil | 100% |
Tamil Nadu | Nil | Nil | 100% |
Karnataka | Nil | Nil | 100% |
Kerala | Nil | Nil | 50% |
Uttar Pradesh | Nil | Nil | 100% |
Rajasthan | 2,500 | 10,000 | NA |
Odisha | NA | 5,000 | 100% |
What is FAME Scheme?
The Indian Government has come up with an incentive scheme known as FAME or Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles. This particular incentive scheme is meant for electric vehicles. The important features of FAME are as follows:
Beginning on 1 April 2015, the first phase of the FAME I scheme received initial approval for a period of 2 years.
There has been an extension of the EV subsidy scheme at different points in time. The last extension was up to 31 March 2019.
The determination of the premium amount of each vehicle category takes place on the basis of battery and technological requirements. The categories could be like purely electric, partially electrical, hybrid, etc.
What is the FAME II Scheme?
Launched on 1 April 2019, FAME II refers to the second phase of the FAME scheme. The important features of FAME II are as follows:
It aims to provide support for 10 lac EV two-wheelers, 55,000 EV cars, 5 lac EV three-wheelers, and 7,000 EV buses.
Extension till March 2024.
Rise in subsidy for EV two-wheelers while it remains same for EV four-wheelers.
Published: June 21, 2022 11:35 IST
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