The Government of India has been proactive in promoting the use of electric vehicles (EVs) in the
country. One of the major ways in which the government has been doing so is by offering subsidies
to the buyers of electric vehicles. This acts as an added incentive to motivate buyers to switch to
electric vehicles in India. In this blog, we will discuss the government subsidy on EVs and the ways in
which it works.
Overview of the Subsidy
The government subsidy on electric vehicles in India is a financial incentive for prospective individual
buyers or organizations who want to purchase electric vehicles. The main motive behind this subsidy
is to encourage the adoption of EVs in this country which will in turn help in the reduction of the
carbon footprint of the transportation sector.
This subsidy is provided by the Department of Heavy Industries (DHI) under the Faster Adoption and
Manufacturing of (Hybrid &) Electric Vehicles (FAME) India scheme. This scheme was launched in the
year 2015 for promoting the use of EVs in the country and has been extended multiple times since
then.
The amount of subsidy is contingent on the type of electric vehicle and its battery capacity. At
present, the subsidy for electric two-wheelers ranges from INR 5000 to INR 1.5 lakh. The subsidy for
electric buses goes up to 50 lakhs, while the subsidy for electric three-wheelers is up to INR 30,000.
Eligibility Criteria
The primary criterion for eligibility for a government subsidy is that vehicle must be registered in
India and have compliance with the DHI’s specifications for EVs. The subsidy is available for
individuals, companies, and organizations, including government departments and agencies.
This subsidy is also available for retrofitted electric vehicles which means that if you have a
conventional vehicle and you are willing to convert it to an electric vehicle, you will be able to apply
for the subsidy. However, the retrofitting must be done by a DHI-approved retro fitment center.
How to Apply for the Subsidy:
To make use of the government subsidy on electric vehicles in India, you need to follow these step
- Purchase an electric vehicle that is approved by the DHI under the FAME India scheme.
- Register the vehicle with the concerned regional transport office.
- Apply for the subsidy on the FAME India website or through the mobile app. Certain essential documents need to be furnished like the proof of purchase, Aadhar card, and registration certificate.
- The subsidy amount will be credited to your bank account after the application is approved.
Benefits of the Subsidy
The government subsidy on electric vehicles in India has a lot of benefits, such as:
- It increases the affordability of EVs: The subsidy reduces the cost of electric vehicles, making
them more accessible to a wider mass. - It aids in promoting clean energy: EVs are powered by electricity, which is a cleaner source
of energy compared to fossil fuels. This subsidy motivates people to switch to EVs, which in
turn reduces the carbon footprint of the transportation sector. - It boosts the economy: By promoting the manufacturing and sale.
Conclusion
The government subsidy on electric vehicles in India is a financial incentive that aims to promote the
adoption of EVs in the country. The subsidy makes EVs more affordable and encourages people to
switch to clean energy. If you are planning to buy an electric vehicle, make sure to check if you’re
eligible for the subsidy and follow the steps to avail it. Together, we can work towards a greener and
cleaner future.
The electric vehicle sector has been able to run successfully in the country partly due to the wide
range of pro-EV policies that have been offered by the Indian government. Delhi, Haryana, and
Maharashtra are among the top three states which have offered the biggest subsidies for EVs within
our country.
It is only likely that the subsidies would not last for a very long time since the main idea behind
offering the subsidy is to encourage the people, agencies, and organizations in the initial adoption
before they become the first choice for the masses and become more affordable on their own.
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