FAME II Scheme Explained: Benefits, Eligibility & Latest Updates

What is the FAME II Scheme?

The FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme is a flagship initiative by the Government of India launched in 2019 to promote electric mobility. With a budget allocation of ₹10,000 crore, FAME II aims to support the adoption of electric two-wheelers, three-wheelers, four-wheelers, and electric buses used for public and commercial transport. The scheme not only incentivizes vehicle buyers but also encourages manufacturers to develop cleaner technologies and supports the development of EV charging infrastructure across the country.

Benefits Under FAME II

One of the key advantages of the FAME II scheme is the upfront financial incentive provided to consumers. For electric two-wheelers, buyers receive a subsidy of ₹15,000 per kWh, capped at 40% of the vehicle cost. For electric three-wheelers and buses, the scheme provides greater subsidies based on battery capacity and usage type. Manufacturers benefit from increased demand, while public transport agencies get financial support for adding electric buses to their fleets, reducing pollution and operating costs.

Eligibility Criteria & Latest Policy Updates (2024–25)

To be eligible for FAME II subsidies, vehicles must meet specific criteria related to range, speed, battery capacity, and energy efficiency, and must be approved by the Department of Heavy Industries. As of 2024–25, the government has extended the FAME II scheme till March 2025. New updates include simplified application procedures, faster disbursal of subsidies, and integration with state-level EV policies. Additionally, the scheme now aligns with upcoming initiatives like PM e-Bus Sewa and the newly launched PM e-Drive to ensure continuity in clean mobility incentives.

Conclusion

The FAME II scheme is a pivotal component of India’s transition toward sustainable transportation. By making electric vehicles more affordable and accessible, it helps reduce the country’s carbon footprint and dependency on fossil fuels. With continued policy support, technological advancements, and growing public awareness, FAME II is not just a subsidy program—it’s a catalyst for a cleaner, greener future in India’s mobility sector.

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