Subsidy Under Fame-II Scheme

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The Ministry of Heavy Industries formulated Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) Scheme for a period of five years commencing from April 01, 2019 with a total budgetary support of Rs. 10,000 crore. This phase mainly focuses on supporting electrification of public & shared transportation, and aims to support through demand incentive 7090 eBuses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers. In addition, creation of charging infrastructure is also supported under the Scheme.

Under phase-II of FAME India Scheme, about 7,40,722 no. of electric two vehicles have been sold as on 20.07.2023 (as per http://fame2.heavyindustries.gov.in/dashboard.aspx).Further, MHI sanctioned 6315 electric buses to 65 cities/STUs/State Govt. entities for intracity operations. At present no proposal to launch FAME-III is under consideration in the Ministry of Heavy Industries.

The Ministry of Heavy Industries has received seventeen (17 nos) complaints regarding misappropriation of subsidies under the Government’s FAME India Phase II scheme by some electric vehicles manufacturers. The complaints are mainly related to the violation of Phased Manufacturing Programme (PMP) guidelines under FAME India Scheme Phase-II. All the complaint cases have been referred to the testing agencies for re-verification. After examination of reports in respect of two OEMs, the models of these two OEMs have been suspended from the FAME scheme. Further, the processing of their pending claims has been stopped till they submit sufficient evidence to show their compliance to PMP timelines.

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