Subsidy Under Fame-II Scheme

The Ministry of Heavy Industries has formulated the Faster EV Adoption and Production Program in India Phase II (FAME India Phase II) for a period of five years starting from 1 April 2019 with a total budget support of Rs. 10,000 crores. This phase mainly focuses on supporting electrification of public and shared transport and aims to support through demand incentive 7090 eBus, 5 lakh e-3 Wheeler, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheeler. Furthermore, the creation of a charging infrastructure is also supported under the scheme.

Under phase II of the FAME India Scheme, approximately 7,40,722 n. of two EVs have been sold as of 20.07.2023 (as per http://fame2.heavyindustries.gov.in/dashboard.aspx). Additionally, MHI has licensed 6315 electric buses to 65 City/STU/State Govt. entity for intracity operations. At present, no proposal for the launch of FAME-III is under examination by the Ministry of Heavy Industries.

The Ministry of Heavy Industries has received seventeen (17 no) complaints regarding subsidy misappropriation under government FAME India Phase II pattern of some electric vehicle manufacturers. The complaints are mainly related to the violation of Phased Manufacturing Program (PMP) guidelines under the FAME India Scheme Phase-II. All complaint cases have been referred to enforcement agencies for re-verification. After the reports of two OEMs were examined, the models of these two OEMs were suspended from the FAME scheme. Additionally, the processing of their pending applications has been halted until they have submitted sufficient evidence to demonstrate their compliance with the PMP timelines.

This information was provided by the Minister of State for Heavy Industries, Mr. Krishan Pal Gurjarin a written reply in the Lok Sabha today.

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CITY/TFK