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Government Subsidies on Electric Vehicles

With the current prevailing crises of climate change and air pollution, the need for electric vehicles is greater than ever before. To promote their adoption, the Government provides subsidies on EV. Here, we present before you state-wise subsidies lists on EV.
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By car&bike Team

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1 mins read

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Published on June 21, 2022

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    State-Wise Subsidies for EV Cars/SUVs 

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    Each state in India has its policy for EV cars/SUVs subsidies. As such, the subsidies may differ from one Indian State to another. The table below demonstrates the various state-wise subsidies for EV cars/SUVs.

    State 

    Subsidy (Per kWh) (INR)

    Maximum Subsidy(INR)

    Road Tax Discount

    West Bengal

    10,000

    1,50,000

    100%

    Bihar

    10,000

    1,50,000

    100%

    Assam

    10,000

    1,50,000

    100%

    Meghalaya

    4,000

    60,000

    100%

    Gujarat

    10,000

    1,50,000

    50%

    Maharashtra

    5,000

    2,50,000

    100%

    Punjab

    Nil

    Nil

    100%

    Andhra Pradesh

    Nil

    Nil

    100%

    Madhya Pradesh

    Nil

    Nil

    99%

    Telengana

    Nil

    Nil

    100%

    Tamil Nadu

    Nil

    Nil

    100%

    Karnataka

    Nil

    Nil

    100%

    Kerala

    Nil

    Nil

    50%

    Uttar Pradesh

    Nil

    Nil

    75%

    Rajasthan

    Nil

    Nil

    NA

    Odisha

    NA

    1,00,000

    100%

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    State-Wise Subsidies for EV Two-Wheelers

    Just like subsidies on electric cars/SUVs, the states also have policies for EV two-wheelers. As in the previous case, these EV two-wheelers subsidies differ among states.  The table below demonstrates the various state-wise subsidies for EV two-wheelers.

    State 

    Subsidy (Per kWh)(INR)

    Maximum Subsidy(INR)

    Road Tax Discount

    West Bengal

    10,000

    20,000

    100%

    Bihar

    10,000

    20,000

    100%

    Assam

    10,000

    20,000

    100%

    Meghalaya

    10,000

    20,000

    100%

    Gujarat

    10,000

    20,000

    50%

    Maharashtra

    5,000

    25,000

    100%

    Punjab

    Nil

    Nil

    100%

    Andhra Pradesh

    Nil

    Nil

    100%

    Madhya Pradesh

    Nil

    Nil

    99%

    Telengana

    Nil

    Nil

    100%

    Tamil Nadu

    Nil

    Nil

    100%

    Karnataka

    Nil

    Nil

    100%

    Kerala

    Nil

    Nil

    50%

    Uttar Pradesh

    Nil

    Nil

    100%

    Rajasthan

    2,500

    10,000

    NA

    Odisha

    NA

    5,000

    100%

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    What is FAME Scheme?

    The Indian Government has come up with an incentive scheme known as FAME or Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles. This particular incentive scheme is meant for electric vehicles. The important features of FAME are as follows:

    • Beginning on 1 April 2015, the first phase of the FAME I scheme received initial approval for a period of 2 years.

    • There has been an extension of the EV subsidy scheme at different points in time. The last extension was up to 31 March 2019.

    • The determination of the premium amount of each vehicle category takes place on the basis of battery and technological requirements. The categories could be like purely electric, partially electrical, hybrid, etc. 

    What is the FAME II Scheme?

    Launched on 1 April 2019, FAME II refers to the second phase of the FAME scheme. The important features of FAME II are as follows:

    • It aims to provide support for 10 lac EV two-wheelers, 55,000 EV cars, 5 lac EV three-wheelers, and 7,000 EV buses. 

    • Extension till March 2024.

    •  Rise in subsidy for EV two-wheelers while it remains same for EV four-wheelers. 

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