FAME-II Scheme

• The government has reduced the subsidy provided under FAME-II scheme applicable on electric two-wheelers registered on or after June 1, 2023.

FAME INDIA SCHEME

• The Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) scheme was launched in
• Aim – It is to support hybrid/electric vehicles market development and manufacturing eco-system.
• Ministry – Ministry of Heavy Industries.
• It is a part of National Electric Mobility Mission Plan.
• The incentive is linked to battery capacity of e-vehicles with a cap 20% of the cost of vehicle.

FAME II

• The scheme was commenced on April 2019 for a period of 3 years.
• Incentive cap increased from 20% to 40% of the capital cost of the e-2W.
• Only advanced battery and registered vehicles will be incentivized under the scheme.
• In 2022, it was further extended for a period of 2 years up to March 31, 2024.

RECENT NOTIFICATION

• The government has reduced the subsidy provided under FAME-II scheme applicable on electric two-wheelers registered on or after June 1, 2023.
• For electric two-wheelers, the demand incentive will be Rs 10,000 per kWh.
• The cap on incentives for electric two-wheelers will be 15% of the ex-factory price of vehicles from 40% at present.