Electric vehicles (EVs) are the future of transportation, and India is rapidly accelerating its shift towards e-mobility. One of the biggest driving forces behind this transition is the government's attractive subsidy schemes that bring down the upfront cost of electric cars.

The Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme is the pillar of India's EV subsidy mission. Launched in 2019, FAME II offers direct financial incentives to electric car buyers, making them more affordable.

Here's how FAME II works:

• The subsidy amount is based on the battery capacity of the electric car.
• You can expect a subsidy of Rs. 10,000 per kWh of battery capacity.
• This translates to significant savings, especially for cars with larger batteries.

Let’s consider an example to illustrate this. Suppose you are considering purchasing an electric car with a battery capacity of 30 kWh. Under the FAME II scheme, you would be eligible for a subsidy of Rs. 10,000 * 30, or Rs. 3,00,000. This can significantly reduce the upfront cost of the electric car, making it a more affordable option compared to a similar petrol or diesel car.

The impact of the FAME II scheme on EV adoption in India has been substantial. Since the launch of the scheme, there has been a noticeable increase in the sales of electric vehicles. For instance, in the fiscal year 2020-2021, the sales of electric cars increased by approximately 20% compared to the previous year. This trend is expected to continue as more and more consumers become aware of the benefits of electric vehicles and the financial incentives offered under the FAME II scheme.

Moreover, the FAME II scheme has also encouraged automobile manufacturers to invest in the development and production of electric vehicles. Several major car manufacturers have launched new electric models in the Indian market, further boosting the adoption of electric vehicles.

Double the Charge, Double the Savings: State EV Policies

Many Indian states are taking the initiative to further enhance EV adoption by offering their own EV subsidy programs. These state-specific policies often work in conjunction with FAME II, providing additional benefits like:

• Reduced road tax or registration fees: This lowers the overall cost of owning an electric car.
• Interest rate subventions on EV loans: This makes financing your electric car purchase more attractive.
• Scrapping incentives: If you trade in your old petrol or diesel car, you might be eligible for additional subsidies.
• Infrastructure Development: Many state policies also focus on developing the necessary infrastructure for EVs, such as charging stations. This not only makes it more convenient to own and use an EV but also addresses one of the major concerns of potential EV buyers.

Claiming Your EV Subsidy: A Smooth Ride

Claiming your EV subsidy under the FAME II scheme and state-specific policies can be a smooth process if you follow the right steps. Here’s a detailed guide on how you can do it:

Purchase an Eligible EV: The first step is to purchase an electric vehicle that is eligible for the subsidy. The eligibility criteria may vary based on the specific guidelines of the FAME II scheme and the state-specific policies. Generally, the vehicle should be a new and fully electric (not hybrid) vehicle.

Apply for the Subsidy: After purchasing the vehicle, you need to apply for the subsidy. The application process may vary from state to state. Generally, you would need to fill out an application form and submit it to the designated authority. The form would require details like your name, address, details of the vehicle, etc.

Submit Required Documents: Along with the application form, you would also need to submit certain documents. These may include a copy of the vehicle’s invoice, proof of registration, proof of insurance, etc. Make sure to keep all these documents ready.

Verification Process: Once you submit the application and the required documents, the authorities will verify the details. They may also inspect the vehicle to ensure it meets the eligibility criteria.

Approval and Disbursement: If everything is in order, the authorities will approve your application. The subsidy amount, calculated based on the battery capacity of the vehicle, will then be disbursed. The disbursement process may vary. In some cases, the subsidy amount might be directly credited to your bank account. In others, it might be adjusted against the loan amount if the vehicle was purchased on loan.

State-Specific Benefits: If your state offers additional benefits like waiver on road tax and registration fee, you would need to apply for these separately at the respective state transport department.