As the world is heading towards a polluted environment, several nations insisted their people to reduce the usage of gasoline vehicles. They insist to use the electric vehicle as an alternative.
To encourage the sales and the manufacturing of electric vehicles government would offer an incentive which is known as the Electric vehicle (EV) Subsidy. This will certainly help in increasing the sales of electric vehicles. In India, the subsidy for EV is offered by the Central government in the name of the “FAME-II” subsidy scheme
The prime motto of providing subsidies is to cut down the price of electric vehicles which impress customers to buy those vehicles. In this way, fame-II includes
The incentive of Rs.15,000 per kWh of capacity is available for EV two-wheelers which is up to 40% of the vehicle cost.
The incentive of Rs.10,000 per kWh of capacity up to 1.5 lakh is available for EV four-wheelers
As a result of this, all the electric vehicles cut down their prices up to Rs.14,500. The secondary motto is to increase the charging stations which in turn helps in increasing the usage of EV two-wheelers, three-wheelers, four-wheelers, and EV buses. To enhance this government announces that under fame-II
You are eligible to opt for 25% of capital subsidy on the equipment and machinery. This is applicable only for the first 250 commercial public EV charging stations.
this is applicable only up to the sum of Rs.10 lakh. Thus these government subsidies play a major role in the adoption of electric vehicles around the nation.
In India apart from the central government fame-II subsidy, there are some of the states which offer EV subsidies just to increase the adoption of EV vehicles. The top three states are
Delhi tops the list by providing the incentive of Rs.10,000 per kWh of capacity with additional subsidies like free registration and exemption of road tax. With 72 EV charging stations, Delhi becomes the best city to use EVs in India.
It has also the same subsidy as fame-II. The additional subsidy is that the increase the number of beneficiaries up to 20,000 for EV cars and 1.1 lakhs for EV two-wheelers.
With the fame-II subsidy, they provide an additional scrappage of Rs.25,000, Rs,1 lakh as early bird incentive, free registration, and exemption of road tax.