Government Approves Outlay of ₹55 Billion for FAME II Program Providing Subsidies for EVs

Incentives will be provided on purchase of all electric vehicles


The central government has approved a subsidy corpus of ₹55 billion (~$0.78 billion) to be disbursed under the second phase of Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) program. The FAME II program will be in force for five years.

Under the program, subsidy will be provided on the purchase of all types of electric vehicles, according to a Press Trust of India (PTI) report. Per the report, an inter-ministerial panel finalized the roadmap for the second phase of FAME India program. The panel has decided to offer subsidy to all categories of electric vehicles, including two-wheelers, three-wheelers and four-wheelers, to promote green vehicles and check pollution.

“Incentives will be provided on purchase of two-wheelers as well as three-wheelers and four-wheelers, including taxis and electric buses used in public transport to check pollution. However, strong hybrid vehicles will not be entitled to sops anymore,” a government official told PTI.

At present, the incentives are being offered on purchase of strong hybrid and electric cars, two-wheelers and three-wheelers under FAME India- I. The corpus of funds approved is in fact more than what was initially expected.

Mercom had recently reported that the Ministry of Finance was mulling over the decision to approve a corpus of ₹40 billion (~$0.58 billion) as subsidy to be disbursed under the second phase of FAME India program.”

Previously, power secretary A K Bhalla had also announced that the government is considering providing subsidy for encouraging setting up of EV charging infrastructure under a policy, likely to be unveiled soon.

The government had launched the FAME program with an initial outlay of ₹750 million (~$11.56 million) to provide a major push for the early adoption and creation of a market for both hybrids and EVs. The FAME Program covers all vehicles ― two-wheelers, three-wheelers, four wheelers and buses. The incentives to be provided are based on the type and make of any given vehicle.

In an exhaustive report, Mercom recently analyzed the EV hotspots in the country that are poised to lead India’s EV revolution.



Saumy Prateek Saumy is a senior staff reporter with covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.