What Is FAME Subsidy On Electric Vehicle, How Does It Benefit You?

What is FAME subsidy on Electric vehicles, and how does it benefit you? read the detailed report.

The sale of electric vehicles has increased rapidly in the Indian automobile market. People are also liking them and the government is also giving huge subsidies to promote EVs.

But now news has come to the fore that some companies are manipulating these subsidies.

According to the exclusive information received from sources, after complaints of irregularities in the FAME subsidy given by the government.

Now the government has temporarily banned the subsidy of 5 companies and they are being audited.

The companies on government have tightened its grip is-

Hero Electric.
Okinawa.
Ampere.
Thukral Electric.
Victory Electric.

In such a situation, there will be a big question in front of you what is FAME subsidy and how do you get to benefit from it?

Let us tell you in detail what is fame subsidy and when and why the government started it.

What is FAME?

To reduce the consumption of emission-free technology and fossil fuel, the government started promoting electric vehicles.

For this, the government started the FAME subsidy i.e. Faster Adoption of Electric Vehicles in India.

In 2019, the government introduced it for the first time and people were given the benefit of a subsidy on the purchase of electric vehicles. The government fixed it at Rs 10,000 per kilowatt.

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Then came FAME 2.

After 2019, along with the manufacturing of electric vehicles, sales also increased.

People liked them and the government introduced the second phase of the fame subsidy i.e. FAME 2 in 2021 to further promote it.

This time the amount of subsidy was increased and it was made from ten thousand to 15 thousand rupees per kilowatt.

How do you get the benefit?

The direct benefit of fame subsidy is given to the customer buying the electric vehicle.

For example, if you buy a car worth Rs 1 lakh and it has a 2 kW electric motor, you will save Rs 30,000 on it at the rate of Rs 15,000 per kW.

That means you will have to buy a vehicle worth Rs 70,000. At the same time, its payment to the company will be done by the government.