Hello Everyone, many of us get confused that what about the cost of registrations and all on the electric scooters. So today we are going to talk about the EV Subsidy Discount on scooters given by state and Central government for each state.
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EV Subsidy Discount
If you have ever noticed on a bill there are two columns one for CGST and another for SGST. Both the central and the state government takes the tax on items. This is the same in the case of EV Subsidy Discount. The central government and the state government give their different subsidies. EV Subsidy Discount from central government will be exactly same all over India. While there might be variations in state government subsidy. They are doing this to promote EVs in India.
As for the central government, there is a scheme called FAME II subsidy. The word FAME refers to the Faster Adoption and Manufacturing of Electric Vehicles in India. Firstly it was launched by the Indian government in 2015 and the budget allotted was ₹895crores. This was a huge flop for them. It was going to end in 2017 but they expanded it up to 2019. In 2019 Government has decided to revise the FAME subsidy. Because the budget of ₹895crores is too much less while the neighboring country of India, China was achieving the target of ₹90000 crores.
This was the revised version of FAME. It is going to end in 2024. In the fame 2 subsidy, they have mentioned that-
- It should have the range of 80 km at least.
- 2kWh of Battery Pack minimum.
- Advanced Batteries (acc. to Govt).
So the price listed on the website of the EV manufacturers is the final price after reducing the FAME 2 subsidy. The Government of India was trying to achieve a target of 1 charging station in an area of 3x3km. But as per the statements of the car manufacturers like Ola, they are claiming to install at least 100000 charging stations in India. So the milestone government wanted to achieve, can be easily achieved.
How does FAME 2 work?
Basically the discount we get on an EV will be based on its battery capacity. So the discount government is giving is ₹10,000/kWh, and it cannot exceed 20% of the cost of that E-Scooter and 40% for E-Buses.
For Example- On an E-Scooter of ₹1,00,000, the Battery pack is of 5kWh. This means the Subsidy we’ll get is ₹50,000(According to Govt). But we will get only ₹20,000 as it is the 20% cost of the vehicle.
As of now, the government has decreased the GST on EVs from 12 % to 5%. Whether there is 28% tax on and petrol scooter. The ₹1,00,000 for Ola S1 is the final price including the FAME subsidy and 5% GST. As per the government, we have to pay the insurance of the vehicle which is around 5% of the cost, Road TAX, Registration. Also, any kind of state subsidy is applicable.
It is totally depending on the state government that if the owner has to pay road tax registration tax. Also, the subsidy applicable varies from state to state. So the below table will represent how many subsidies and taxes will be charged from the state governments and on the basis of Ola S1 which costs ₹100,000.
|Price of Ola S1
|Scrappage Policy & Other Incentives
|₹5k/kWh up to ₹30k
|Rajasthan (till March 2022)
|Less than 2kWh-₹5000,
Less Than 4kWh- ₹7000,
Less Than 5kWh- ₹9000, More Than 5kWh- ₹10000
|₹10k/kWh up to ₹20k
|₹5k/kWh up to ₹10k
|₹7,000 & ₹12,000
Currently, there are many states which are not clarified about their subsidies. But it is confirmed that they will not make any Registration and Road Tax which is around 10%. The states are- Delhi, Maharashtra, Karnataka, UP, Kerala, Bihar, UK, TN, Andhra P, Punjab Telangana.
If you are planning to buy an Ola S1 Pro or Activa 6g, then we have also done a price analysis between Ola S1 Pro and Activa 6G. Click here to know which scooter is suitable for your needs according to their Price.
That’s it guys for today! We hope this cleared all of your confusion regarding subsidies in different states. If still, you have any query then you can ask in comments. Also, you can give any suggestions to us regarding this topic in the comments. You can check our website and YouTube channel for more. We’ll meet in the next blog. Until then, Stay Safe Stay Sarcastic!