Government Subsidies on Electric Vehicles

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.