Government Subsidy on Electric Vehicles

Every country has a system which runs the entire nation. All the rules, regulations, laws are made by that system to govern a state or a Nation as a whole. A system of social control under which the right to make laws and the right to impose them is granted in a community is the government. When we have a democratic government, it clearly depicts that it’s by the people, of the people and for the people. Which means that everything done by the system will somehow be benefiting the entire community. 

We all are facing hazardous effects of rapidly increasing pollution. This broke all the bars of tolerance. The globe has now decided to cut out the roots of pollution which majorly is being the fossil fuels emissions. The consumption of ice has been accelerating the roads at its higher speed. We must mark a pause here before it pauses our lives. The GOI once again took a massive initiative to stop spreading its roots to the core.

Then comes FAME (Faster Adoption & Manufacturing of Electric Vehicles) SCHEME under Demand Incentive Disbursement Mechanism by GOI. This was a profit scheme for the manufacturers, the sellers, and the consumers. FAME 1 & FAME 2 which aimed to promote the use of EVs in the Nation to reduce fossil fuels dependence and thus lower the harmful emissions. FAME 1 scheme was launched on 1st April, 2K15, which aimed at the faster adoption of electric vehicles in India. The GOI categorized electric vehicles based on its respective batteries and technical specifications, based on which the subsidy would be granted from the Central & the State Government to the OEMs & the end-user. Then launched FAME 2 scheme on 1st April, 2K19 that focused on the adoption of the whole EV eco-system in India. The OEMs are  getting subsidy on the electric vehicles by the central government. While the sellers and the end product consumers are benefitted by the state government on the electric 2wheelers, 3wheelers, 4wheelers along with the electric buses.

Under this FAME SCHEME in India, registration fees & road Tax on electric bikes, scooters, cars, and electric buses are comparatively much lesser than fuel vehicles. Many State Governments provide big subsidies to the consumer. Central Govt. is also providing subsidies directly to OEM based on their sales under FAME II scheme. Moreover, GST is reduced to 5% on the electric vehicles compared to the standard GST rates which is 18% for other vehicles. It’s not up to this, in fact, the state government is further providing more benefits directly to the buyer of electric wheelers.

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