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Govt may extend Fame II incentive scheme for purchase of personal EV cars and e-bicycles
Samiksha Patil
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Published on 1st Oct 21

Govt may extend Fame II incentive scheme for purchase of personal EV cars and e-bicycles


The adoption of electric vehicles in India is at a lower rate than most developed countries, which is lagging the country behind. After efforts to turn the crisis down, the government has taken several steps to promote electric vehicles, clean fuels, and electricity across the country.

The introduction of Fame I and Fame II to provide schemes and policies in favor of adopting electric vehicles at a faster rate. The scheme, started in 2019 for promoting sales of electric vehicles, was supposed to end by 2022. But the officials announced the scheme to last 2 more years that is until 2024.

The government of India is looking towards expanding the Fame II scheme and its incentives for the buyers of passenger cars for personal use. Government sources also mentioned the possibilities of including electric bicycles under the capital subsidy scheme seeing its growing popularity and the need to bring down its cost for customers.


Official's statement

The Department of Heavy industries said “The scheme is proposed to be implemented over a period of 3 years, w.e.f 1st April 2019, for faster adoption of electric mobility and development of its manufacturing eco-system in the country. Now with the approval of the competent authority, it is decided that the FAME India Phase II scheme is extended for a period of two (2) years i.e., up to 31st March 2024,"


Current Fame II scheme


The current Fame II scheme benefits electric two-wheelers, three-wheelers, four-wheeled passenger electric vehicles, and goods carrying electric vehicles. Under which the vehicles were provided incentives to decrease the purchase price. FAME 2 had increased the compensation offered from Rs 10,000 per kWh to Rs 15,000 per kWh. The highest subsidy cap is also extended to 40 percent of the e-two-wheeler cost compared to 20 percent earlier.


The government sources also mentioned a revised structure for the passenger cars purchased for personal use and e-bicycles. No official details about this have been announced yet.

The SCALE committee or Steering Committee for Advancing Local Value-Add and Exports, a joint government-industry panel tasked with fast-tracking growth of the Indian manufacturing sector is likely to provide incentives for electric vehicles.

The committee headed by Mahindra & Mahindra managing director Pawan Goenka has recommended a FAME-like incentive of Rs 5000 per unit for e-bicycles to reduce its cost at least by Rs 3,000 stated a report to the commerce ministry.


Statistics of Fame II


The Fame II was launched to have higher adaptability of electric vehicles in India. In the April of 2019 with a budget of Rs 10,000 crore. With a motive of supporting 7,000 e-buses, 5,00,000 e-three-wheelers, 55,000 e-passenger vehicles, and a million e-two-wheelers.

To date, about 1,24,415 vehicles have benefited under the scheme.

  • 99,652 electric two-wheelers.
  • 23,059 electric three-wheelers.
  • 1,693 electric four-wheelers.


The top 6 state wise registration of electric vehicles are:

  • Karnataka (25,725 Electric vehicles)
  • Tamil Nadu (19,222 Electric vehicles)
  • Maharashtra (13,384 Electric vehicles)
  • Uttar Pradesh (7,990 Electric vehicles)
  • Rajasthan (10,010 Electric vehicles)
  • Delhi (8,897 Electric vehicles)



The Government is taking required and possible majors to support and develop the electric vehicle industry in the country. With the support of Electric Vehicle manufacturers, Electric vehicle charging station manufacturers, and the users.

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