FAME 2 Subsidy in India: Eligibility, Amount, Benefits, How to Claim

FAME 2 Subsidy in India: Eligibility, Amount, Benefits, How to Claim.  
With the rising environmental concerns caused by diesel and petrol vehicles, the Government of India has taken strong steps to encourage the use of electric vehicles (EVs). One of the major initiatives to promote this shift is the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. The second phase of this program, known as FAME 2 Subsidy, was launched to make electric vehicles more affordable and accessible for the general public. In this article, we will explain in detail everything about the FAME 2 Subsidy in India, including eligibility, amount, benefits, the claiming process, and other important information.
What is FAME 2 Subsidy?
The FAME 2 Subsidy in India stands for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles. It is an initiative by the Indian government to promote electric mobility by providing financial incentives to buyers of electric vehicles. The FAME program is a part of the National Electric Mobility Mission Plan (NEMMP) which was introduced to reduce dependency on fossil fuels and lower vehicular pollution.
The first phase of the FAME scheme was launched on 1st April 2015 and continued till March 31, 2019. After the success of Phase 1, the government rolled out Phase 2 from 1st April 2019. FAME 2 was initially planned for three years but was later extended until 31st March 2024, with possibilities of extension due to growing demand. The main aim is to offer subsidies on the purchase of electric two-wheelers, three-wheelers, four-wheelers, and public transport vehicles like electric buses.
Fame 2 Subsidy on Electric Scooters
One of the significant focuses of FAME 2 Subsidy in India is to make electric two-wheelers more affordable. Under FAME 2, the government has set a target to support one million electric two-wheelers. Every eligible electric two-wheeler receives a subsidy of Rs. 20,000.
However, not all electric scooters qualify for the scheme. Only those vehicles that can achieve a minimum speed of 40 km per hour and a minimum range of 80 km on a single charge are eligible. This ensures that the consumers receive quality products that are efficient and practical for daily use.
Moreover, the government is also working on establishing 2700 charging stations across India. These stations are planned near metro stations, smart cities, hilly states, and even highways to promote hassle-free usage of electric scooters.
Eligibility Criteria for Fame 2 Subsidy
The FAME 2 Subsidy is not available to everyone automatically. Certain eligibility conditions need to be met. To claim the subsidy:

You must be an individual with valid ID proof like Aadhaar Card, PAN Card, or Driving License.

The name you use during the vehicle registration process must exactly match the name on your ID proof.

You must not have claimed the FAME 2 Subsidy earlier for another electric two-wheeler.

These conditions are designed to prevent misuse of the subsidy and ensure it reaches genuine new EV buyers. Ensuring that the documentation is proper and accurate is crucial for availing the benefit.
Companies Approved for Fame 2 Subsidy
Over 50 companies have been approved under the FAME 2 Subsidy in India. These companies either manufacture electric vehicles or provide electric vehicle infrastructure like charging stations. Some of the well-known companies approved under the scheme include:

Tata Motors

TVS Motor Company

Ola Electric Technologies

These manufacturers ensure that the eligible vehicles meet the specifications and performance benchmarks outlined under the FAME 2 scheme. Consumers buying electric vehicles from these companies can trust that they are eligible for the subsidy benefit.
Amount of Fame 2 Subsidy
Initially, the FAME 2 Subsidy in India provided Rs. 10,000 per kilowatt-hour (kWh) of battery capacity. Later, the government increased this to Rs. 15,000 per kWh, with a maximum subsidy limit of 40% of the vehicle's cost. However, there was a revision effective from June 1, 2023, where the subsidy cap was reduced to 15% of the ex-factory price of the vehicle.
For instance, earlier, if someone bought an electric scooter, they could get a subsidy benefit of up to Rs. 40,000. After the change, the maximum subsidy dropped to Rs. 15,000. This has led to an increase in the effective purchase price of electric scooters by almost 25%.
How to Claim Fame 2 Subsidy?
Claiming the FAME 2 Subsidy is a simple process if you follow the correct steps. Here is how you can claim it:

Visit the official website of the Ministry of Heavy Industries.

Navigate to the "FAME India Phase II" section.

Fill in the required form with correct and matching details as per your ID proof.

Upload the necessary documents.

Submit the application form.

Once your documents and information are verified successfully, the subsidy benefit is granted. Generally, when you buy the vehicle from an approved dealer, the subsidy is already deducted from the vehicle price, making the process even smoother for buyers.
Benefits of Fame 2 Subsidy
The FAME 2 Subsidy in India provides several benefits not just to the consumers but also to the environment and economy.

Lower Purchase Cost: The immediate benefit is that electric vehicles become more affordable due to the direct price reduction.

Environmental Protection: Encouraging electric vehicles reduces air pollution and helps in cutting down carbon emissions.

Reduced Fuel Dependency: More EVs on the road mean lesser dependence on petrol and diesel, saving valuable foreign exchange.

Boost to EV Industry: It promotes the growth of the EV manufacturing industry, leading to new job opportunities.

Additional State Benefits: Many states like Gujarat, Maharashtra, and Odisha offer additional subsidies that further lower the purchase cost of EVs.

Fame 2 Subsidy Validity
The validity of the FAME 2 Subsidy in India was extended till 31st March 2024 or until the allocated budget is exhausted. The government has already disbursed around Rs. 5,884 crores in subsidies. Hence, consumers looking to buy an electric vehicle should make use of the scheme before the funds are exhausted.
Fame 2 Subsidy Target
The government has set ambitious targets under the FAME 2 Subsidy. It aims to support:

7,000 electric buses

5 lakh electric three-wheelers

55,000 electric four-wheeler passenger cars, including strong hybrid vehicles

10 lakh electric two-wheelers

These numbers reflect the government's commitment to building an electric mobility ecosystem in India.
Vehicles Eligible for Fame 2 Subsidy
The FAME 2 Subsidy in India covers several categories of vehicles. It includes:

Electric two-wheelers like scooters and bikes

Electric three-wheelers like auto-rickshaws

Electric four-wheelers including private cars and taxis

Electric buses used for public transportation

The vehicles must meet the minimum performance and efficiency criteria set by the scheme to be eligible.
Fame 2 Subsidy for Different States
Many states have their own additional incentives that can be availed along with the FAME 2 Subsidy.

Odisha: Offers a 15% subsidy on the purchase price of electric two-wheelers and three-wheelers.

Gujarat: Offers up to Rs. 20,000 subsidy on electric two-wheelers and up to Rs. 1.5 lakh on electric cars.

Maharashtra: Offers a subsidy up to Rs. 25,000 for two-wheelers and up to Rs. 2.5 lakh for four-wheelers.

This makes electric vehicles even more attractive for consumers in these states.
Fame 2 Subsidy and Future Plans: Fame 3
The government is also planning the next phase, known as FAME 3. Under the new plans:

Rs. 500 crore has been earmarked for electric ambulances.

Rs. 3,679 crore will be used to promote electric two, three, and four-wheelers.

Over 14,000 electric buses, 3.16 lakh electric three-wheelers, and 24.79 lakh electric two-wheelers are expected to be supported.

The interim Electric Mobility Promotion Scheme (EMPS) 2024 is also active till September 2024, which will bridge the gap before the full launch of FAME 3.
Key Changes in FAME 2 Compared to FAME 1
The FAME 2 Subsidy brought several major changes over FAME 1.

The budget allocation increased to Rs. 10,000 crores.

The focus shifted more towards public transport vehicles like e-buses.

The incentives were linked more closely to battery capacity.

Higher subsidies were offered for vehicles with larger battery packs.

These changes made the program stronger and targeted towards mass adoption.
How Fame 2 Subsidy Supports Public Transport
The FAME 2 Subsidy in India is not limited to private vehicle buyers. It also supports public transport by offering incentives on electric buses. The plan to deploy 7,000 electric buses will reduce pollution in urban areas and encourage people to shift towards eco-friendly commuting options.
Documents Required for Claiming Fame 2 Subsidy
To avail the FAME 2 Subsidy, you need the following documents:

Valid government-issued ID proof

Purchase invoice of the electric vehicle

Vehicle registration certificate

Bank account details for verification

Having proper documentation ready will ensure a smooth subsidy claiming process.
Conclusion
The FAME 2 Subsidy in India is a major step toward creating a greener and cleaner environment. It provides financial benefits to consumers, boosts the electric vehicle market, and helps the nation reduce its dependency on fossil fuels. With the government offering additional infrastructure support and state-wise incentives, buying an electric vehicle has become more practical and affordable than ever.
If you are planning to switch to an electric vehicle, now is a great time to take advantage of the FAME 2 Subsidy before it ends. Whether it is for private use or public transport, electric mobility is the future, and the FAME 2 Subsidy in India is making that future accessible to everyone.
FAQs
Q1. What is the objective of the Fame 2 Subsidy?
Ans. The Fame 2 Subsidy in India aims to promote the adoption of electric vehicles by offering financial incentives. It focuses on reducing dependence on fossil fuels, lowering vehicular pollution, and building a robust electric mobility ecosystem.
Q2. Who can avail the Fame 2 Subsidy?
Ans. Individuals, businesses, and public transport operators purchasing eligible electric vehicles can claim the Fame 2 Subsidy. The buyer must provide valid ID proof and ensure that the vehicle is registered with matching details.
Q3. What types of vehicles are eligible under Fame 2 Subsidy?
Ans. Electric two-wheelers, three-wheelers, four-wheelers, and public transport vehicles like electric buses that meet the required speed, range, and performance standards are eligible for the subsidy.
Q4. How is the Fame 2 Subsidy amount calculated?
Ans. The subsidy is based on the battery capacity. It was initially Rs. 10,000 per kWh and later increased to Rs. 15,000 per kWh, with a maximum subsidy cap of 15% of the ex-factory vehicle cost as of June 2023.
Q5. Is the Fame 2 Subsidy available in all states?
Ans. Yes, the Fame 2 Subsidy is applicable across India. Additionally, several states like Gujarat, Maharashtra, and Odisha offer extra subsidies over and above the central Fame 2 benefits.
Q6. How can one claim the Fame 2 Subsidy?
Ans. Buyers can claim the Fame 2 Subsidy by purchasing an approved electric vehicle from a certified dealer, where the subsidy is directly deducted from the vehicle's price. In some cases, buyers can also apply through the Ministry of Heavy Industries' website.
Q7. Until when is the Fame 2 Subsidy valid?
Ans. The Fame 2 Subsidy in India is valid until 31st March 2024 or until the allocated budget is fully utilized, whichever comes earlier. Consumers are encouraged to make their purchases before the deadline.
Q8. What are the documents required to claim the Fame 2 Subsidy?
Ans. To claim the Fame 2 Subsidy, buyers must provide a valid ID proof, purchase invoice, vehicle registration certificate, and bank account details for verification.

With the rising environmental concerns caused by diesel and petrol vehicles, the Government of India has taken strong steps to encourage the use of electric vehicles (EVs). One of the major initiatives to promote this shift is the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. The second phase of this program, known as FAME 2 Subsidy, was launched to make electric vehicles more affordable and accessible for the general public. In this article, we will explain in detail everything about the FAME 2 Subsidy in India, including eligibility, amount, benefits, the claiming process, and other important information.

What is FAME 2 Subsidy?

The FAME 2 Subsidy in India stands for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles. It is an initiative by the Indian government to promote electric mobility by providing financial incentives to buyers of electric vehicles. The FAME program is a part of the National Electric Mobility Mission Plan (NEMMP) which was introduced to reduce dependency on fossil fuels and lower vehicular pollution.

The first phase of the FAME scheme was launched on 1st April 2015 and continued till March 31, 2019. After the success of Phase 1, the government rolled out Phase 2 from 1st April 2019. FAME 2 was initially planned for three years but was later extended until 31st March 2024, with possibilities of extension due to growing demand. The main aim is to offer subsidies on the purchase of electric two-wheelers, three-wheelers, four-wheelers, and public transport vehicles like electric buses.

Fame 2 Subsidy on Electric Scooters

One of the significant focuses of FAME 2 Subsidy in India is to make electric two-wheelers more affordable. Under FAME 2, the government has set a target to support one million electric two-wheelers. Every eligible electric two-wheeler receives a subsidy of Rs. 20,000.

However, not all electric scooters qualify for the scheme. Only those vehicles that can achieve a minimum speed of 40 km per hour and a minimum range of 80 km on a single charge are eligible. This ensures that the consumers receive quality products that are efficient and practical for daily use.

Moreover, the government is also working on establishing 2700 charging stations across India. These stations are planned near metro stations, smart cities, hilly states, and even highways to promote hassle-free usage of electric scooters.

Eligibility Criteria for Fame 2 Subsidy

The FAME 2 Subsidy is not available to everyone automatically. Certain eligibility conditions need to be met. To claim the subsidy:

You must be an individual with valid ID proof like Aadhaar Card, PAN Card, or Driving License.
The name you use during the vehicle registration process must exactly match the name on your ID proof.
You must not have claimed the FAME 2 Subsidy earlier for another electric two-wheeler.

These conditions are designed to prevent misuse of the subsidy and ensure it reaches genuine new EV buyers. Ensuring that the documentation is proper and accurate is crucial for availing the benefit.

Companies Approved for Fame 2 Subsidy

Over 50 companies have been approved under the FAME 2 Subsidy in India. These companies either manufacture electric vehicles or provide electric vehicle infrastructure like charging stations. Some of the well-known companies approved under the scheme include:

Tata Motors
TVS Motor Company
Ola Electric Technologies

Amount of Fame 2 Subsidy

Initially, the FAME 2 Subsidy in India provided Rs. 10,000 per kilowatt-hour (kWh) of battery capacity. Later, the government increased this to Rs. 15,000 per kWh, with a maximum subsidy limit of 40% of the vehicle's cost. However, there was a revision effective from June 1, 2023, where the subsidy cap was reduced to 15% of the ex-factory price of the vehicle.

For instance, earlier, if someone bought an electric scooter, they could get a subsidy benefit of up to Rs. 40,000. After the change, the maximum subsidy dropped to Rs. 15,000. This has led to an increase in the effective purchase price of electric scooters by almost 25%.

How to Claim Fame 2 Subsidy?

Claiming the FAME 2 Subsidy is a simple process if you follow the correct steps. Here is how you can claim it:

Visit the official website of the Ministry of Heavy Industries.
Navigate to the "FAME India Phase II" section.
Fill in the required form with correct and matching details as per your ID proof.
Upload the necessary documents.
Submit the application form.

Benefits of Fame 2 Subsidy

The FAME 2 Subsidy in India provides several benefits not just to the consumers but also to the environment and economy.

Lower Purchase Cost: The immediate benefit is that electric vehicles become more affordable due to the direct price reduction.
Environmental Protection: Encouraging electric vehicles reduces air pollution and helps in cutting down carbon emissions.
Reduced Fuel Dependency: More EVs on the road mean lesser dependence on petrol and diesel, saving valuable foreign exchange.
Boost to EV Industry: It promotes the growth of the EV manufacturing industry, leading to new job opportunities.
Additional State Benefits: Many states like Gujarat, Maharashtra, and Odisha offer additional subsidies that further lower the purchase cost of EVs.

Fame 2 Subsidy Validity

The validity of the FAME 2 Subsidy in India was extended till 31st March 2024 or until the allocated budget is exhausted. The government has already disbursed around Rs. 5,884 crores in subsidies. Hence, consumers looking to buy an electric vehicle should make use of the scheme before the funds are exhausted.

Fame 2 Subsidy Target

The government has set ambitious targets under the FAME 2 Subsidy. It aims to support:

7,000 electric buses
5 lakh electric three-wheelers
55,000 electric four-wheeler passenger cars, including strong hybrid vehicles
10 lakh electric two-wheelers

These numbers reflect the government's commitment to building an electric mobility ecosystem in India.

Vehicles Eligible for Fame 2 Subsidy

The FAME 2 Subsidy in India covers several categories of vehicles. It includes:

Electric two-wheelers like scooters and bikes
Electric three-wheelers like auto-rickshaws
Electric four-wheelers including private cars and taxis
Electric buses used for public transportation

The vehicles must meet the minimum performance and efficiency criteria set by the scheme to be eligible.

Fame 2 Subsidy for Different States

Many states have their own additional incentives that can be availed along with the FAME 2 Subsidy.

Odisha: Offers a 15% subsidy on the purchase price of electric two-wheelers and three-wheelers.
Gujarat: Offers up to Rs. 20,000 subsidy on electric two-wheelers and up to Rs. 1.5 lakh on electric cars.
Maharashtra: Offers a subsidy up to Rs. 25,000 for two-wheelers and up to Rs. 2.5 lakh for four-wheelers.

This makes electric vehicles even more attractive for consumers in these states.

Fame 2 Subsidy and Future Plans: Fame 3

The government is also planning the next phase, known as FAME 3. Under the new plans:

Rs. 500 crore has been earmarked for electric ambulances.
Rs. 3,679 crore will be used to promote electric two, three, and four-wheelers.
Over 14,000 electric buses, 3.16 lakh electric three-wheelers, and 24.79 lakh electric two-wheelers are expected to be supported.

The interim Electric Mobility Promotion Scheme (EMPS) 2024 is also active till September 2024, which will bridge the gap before the full launch of FAME 3.

Key Changes in FAME 2 Compared to FAME 1

The FAME 2 Subsidy brought several major changes over FAME 1.

The budget allocation increased to Rs. 10,000 crores.
The focus shifted more towards public transport vehicles like e-buses.
The incentives were linked more closely to battery capacity.
Higher subsidies were offered for vehicles with larger battery packs.

These changes made the program stronger and targeted towards mass adoption.

How Fame 2 Subsidy Supports Public Transport

The FAME 2 Subsidy in India is not limited to private vehicle buyers. It also supports public transport by offering incentives on electric buses. The plan to deploy 7,000 electric buses will reduce pollution in urban areas and encourage people to shift towards eco-friendly commuting options.

Documents Required for Claiming Fame 2 Subsidy

To avail the FAME 2 Subsidy, you need the following documents:

Valid government-issued ID proof
Purchase invoice of the electric vehicle
Vehicle registration certificate
Bank account details for verification

Having proper documentation ready will ensure a smooth subsidy claiming process.

Conclusion

The FAME 2 Subsidy in India is a major step toward creating a greener and cleaner environment. It provides financial benefits to consumers, boosts the electric vehicle market, and helps the nation reduce its dependency on fossil fuels. With the government offering additional infrastructure support and state-wise incentives, buying an electric vehicle has become more practical and affordable than ever.

If you are planning to switch to an electric vehicle, now is a great time to take advantage of the FAME 2 Subsidy before it ends. Whether it is for private use or public transport, electric mobility is the future, and the FAME 2 Subsidy in India is making that future accessible to everyone.

FAQs

Q1. What is the objective of the Fame 2 Subsidy?

Ans. The Fame 2 Subsidy in India aims to promote the adoption of electric vehicles by offering financial incentives. It focuses on reducing dependence on fossil fuels, lowering vehicular pollution, and building a robust electric mobility ecosystem.

Q2. Who can avail the Fame 2 Subsidy?

Ans. Individuals, businesses, and public transport operators purchasing eligible electric vehicles can claim the Fame 2 Subsidy. The buyer must provide valid ID proof and ensure that the vehicle is registered with matching details.

Q3. What types of vehicles are eligible under Fame 2 Subsidy?

Ans. Electric two-wheelers, three-wheelers, four-wheelers, and public transport vehicles like electric buses that meet the required speed, range, and performance standards are eligible for the subsidy.

Q4. How is the Fame 2 Subsidy amount calculated?

Ans. The subsidy is based on the battery capacity. It was initially Rs. 10,000 per kWh and later increased to Rs. 15,000 per kWh, with a maximum subsidy cap of 15% of the ex-factory vehicle cost as of June 2023.

Q5. Is the Fame 2 Subsidy available in all states?

Ans. Yes, the Fame 2 Subsidy is applicable across India. Additionally, several states like Gujarat, Maharashtra, and Odisha offer extra subsidies over and above the central Fame 2 benefits.

Q6. How can one claim the Fame 2 Subsidy?

Ans. Buyers can claim the Fame 2 Subsidy by purchasing an approved electric vehicle from a certified dealer, where the subsidy is directly deducted from the vehicle's price. In some cases, buyers can also apply through the Ministry of Heavy Industries' website.

Q7. Until when is the Fame 2 Subsidy valid?

Ans. The Fame 2 Subsidy in India is valid until 31st March 2024 or until the allocated budget is fully utilized, whichever comes earlier. Consumers are encouraged to make their purchases before the deadline.

Q8. What are the documents required to claim the Fame 2 Subsidy?

Ans. To claim the Fame 2 Subsidy, buyers must provide a valid ID proof, purchase invoice, vehicle registration certificate, and bank account details for verification.