DELAYED IMPLEMENTATION AND UTILISATION GAPS UNDER THE FAME-II ELECTRIC MOBILITY - 21st July 2026 - Ministry of Heavy Industries - Gazette Notification PDF
Read or download the official PDF of this gazette notification issued by the Ministry of Heavy Industries on 21st July 2026. Classified under Press Release.
Executive Summary
This report by the Ministry of Heavy Industries outlines the progress and framework of several schemes designed to accelerate electric vehicle (EV) adoption and manufacturing in India. It highlights a significant increase in EV adoption, rising from 0.08% in FY 2015-16 to 8.26% by FY 2025-26. Key timelines include the conclusion of FAME-II on March 31, 2024, and the notification of newer initiatives like PM EDRIVE and PM e-Bus Sewa in late 2024.
Key Points / Main Content
EV Adoption and Demand Incentives
FAME-II Scheme: Operated from April 2019 to March 2024 with an ₹11,500 crore budget; supported 16.72 lakh EVs and 5,197 e-buses as of June 2026.
PM EDRIVE Scheme: Notified in September 2024 with a ₹10,900 crore outlay; targets the incentivization of 28.30 lakh EVs, including e-2Ws, e-3Ws, e-Trucks, and e-Ambulances.
e-Bus Deployment: Under PM EDRIVE, ₹4,391 crore is allocated for 14,028 e-buses, primarily targeting seven major cities and the Union Territory of Jammu & Kashmir.
Manufacturing and Industrial Incentives
PLI-Auto: A ₹25,938 crore scheme notified in September 2021 to enhance manufacturing of Advanced Automotive Technology (AAT) products.
PLI-ACC Battery Storage: An ₹18,100 crore scheme focused on establishing a 50 GWh domestic manufacturing ecosystem for Advanced Chemistry Cell batteries.
SPMEPCI Scheme: Notified in March 2024 to promote electric passenger car manufacturing; requires a minimum investment of ₹4,150 crore per applicant.
Infrastructure and Operational Support
Charging Infrastructure: ₹912.50 crore was allocated under FAME-II, and an additional ₹2,000 crore is earmarked under PM EDRIVE for pan-India public charging stations.
PM e-Bus Sewa (PSM): A ₹3,435.33 crore scheme providing a payment security mechanism for e-bus operators to mitigate default risks by Public Transport Authorities.
Testing Agencies: PM EDRIVE includes provisions for the upgradation of testing agencies to support the EV ecosystem.
Regulatory and Fiscal Measures
Tax Reductions: GST on electric vehicles and charging stations has been reduced to 5%.
Permit Exemptions: Battery-operated vehicles are exempt from permit requirements and are issued distinctive green license plates.
State Road Tax: The Ministry of Road Transport & Highways (MoRTH) has advised states to waive road taxes on EVs to lower initial acquisition costs.
Impact Analysis
Automotive ManufacturersImpact
They benefit from massive budgetary outlays under PLI and SPMEPCI schemes intended to boost AAT and EV production.
Action Required
Applicants under SPMEPCI must meet a minimum Domestic Value Addition (DVA) of 25% by the third year and 50% by the fifth year.
Public Transport Operators and AuthoritiesImpact
Operators receive financial security through the PM e-Bus Sewa payment mechanism, while cities receive significant allocations for e-bus fleets.
Action Required
Authorities in the seven identified "four million plus" population cities must manage the deployment of the 13,800 allocated e-buses.
Consumers and End-UsersImpact
Users benefit from reduced purchase costs via demand incentives, lower GST, and potential road tax waivers.
Action Required
Transitioning to battery-operated vehicles to utilize green license plates and permit exemptions.
Testing AgenciesImpact
Agencies receive financial support for infrastructure and technology upgrades under the PM EDRIVE scheme.
Action Required
Implement upgrades to facilities to accommodate the growing volume of EV testing and certification.
Key Entities Referenced
Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II: A flagship scheme with a ₹11,500 crore budget to promote EV adoption through demand incentives and charging infrastructure development.
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme: A ₹10,900 crore initiative launched in 2024 to incentivize electric vehicles, e-buses, and public charging stations.
Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry: A manufacturing-focused scheme with a ₹25,938 crore outlay for Advanced Automotive Technology products including EVs.
Production Linked Incentive (PLI) Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage: An ₹18,100 crore program aimed at establishing a 50 GWh domestic manufacturing ecosystem for advanced battery cells.
Ministry of Heavy Industries: The primary government department responsible for the implementation and oversight of India's electric mobility and manufacturing schemes.
Ministry of Heavy Industries
DELAYED IMPLEMENTATION AND UTILISATION
GAPS UNDER THE FAME-II ELECTRIC
MOBILITY SCHEME
प्रव तथ: 21 JUL 2026 5:05PM by PIB Delhi
The details of the schemes implemented by the Ministry of Heavy Industries (MHI) for the development
of electric vehicles in the country along with provisions for charging stations are as under:
i. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME
India) Scheme Phase-II: The Government implemented this scheme for a period of five
years from 01.04.2019 to 31.03.2024 with a total budgetary support of ₹11,500 crore. The
scheme provided demand incentive for e-2Ws, e-3Ws, e-4Ws and grant for e-buses and
setting up of EV public charging stations (EV PCS). FAME-II has supported the sale of
approximately 16.72 lakh electric vehicles, including e-2Ws, e-3Ws, and e-4Ws. In addition,
5,197 electric buses (e-buses) have been deployed under the Scheme as on 30.06.2026.
Further, an amount of ₹912.50 crore was allocated under the Scheme for the establishment of
EVPCS across the country.
ii. Production Linked Incentive (PLI) Scheme for Automobile and Auto Component
Industry in India (PLI-Auto): The Government notified this scheme for Automobile and
Auto Component Industry in India, on 23.09.2021, for enhancing India's manufacturing
capabilities for Advanced Automotive Technology (AAT) products, including EVs, with a
budgetary outlay of ₹25,938 crore.
iii. Production Linked Incentive (PLI) Scheme for National Programme on Advanced
Chemistry Cell (ACC) Battery Storage : The Government on 09.06.2021 notified the PLI
Scheme for manufacturing of ACC in the country with a budgetary outlay of ₹18,100 crore.
The scheme aims to establish a competitive domestic manufacturing ecosystem for 50 GWh
of ACC batteries.
iv. PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE)
Scheme: This scheme with an outlay of ₹10,900 crore has been notified on 29.09.2024. This
scheme supports incentivization of approximately 28.30 lakh electric vehicles (EVs)
including e-2W, e-3W, e-Trucks, e-buses and e-Ambulances. Further, grant for EV public
charging stations (EV PCS) and upgradation of testing agencies is also available under this
scheme. An allocation of ₹4,391 crore has been made under the scheme for deployment of
14,028 e-buses out of which 13,800 e-buses have been allocated in seven cities having four
million plus population viz. Delhi, Bengaluru, Hyderabad, Mumbai, Ahmedabad, Pune and
Surat. Further, 200 e-buses have been approved for Union Territory of Jammu & Kashmir.
₹2,000 crore has been allocated for deployment of EV Public Charging Station on pan India
basis.
v. PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: This Scheme notified on
28.10.2024, has an outlay of ₹3,435.33 crore and aims to support deployment of more than38,000 electric buses. The objective of this scheme is to provide payment security to e-bus
operators in case of default by Public Transport Authorities (PTAs).
vi. Scheme for Promotion of Manufacturing of Electric Passenger Cars in India
(SPMEPCI) was notified on 15th March, 2024 to promote the manufacturing of electric cars
in India. This scheme requires applicants to invest a minimum of ₹4,150 crore and to achieve
a minimum DVA of 25% at the end of the third year and DVA of 50% at the end of the fifth
year.
Further, following initiatives have also been taken up by the Government of India to
increase the use of electric vehicles in the country:–
i. GST on electric vehicles and chargers/ charging stations for electric vehicles has been
reduced to 5%.
ii. Ministry of Road Transport & Highways (MoRTH) announced that battery-operated
vehicles will be given green license plates and be exempted from permit requirements.
iii. MoRTH issued advisory to states to waive road tax on EVs, which in turn will help reduce
the initial cost of EVs.
(c): Number of EVs supported under MHI’s schemes as on 30.06.2026, are as under:
Scheme FAME-I FAME-II PM E-DRIVE PLI Auto & Auto
Scheme (Sold) Components (Sold)
(Sold)
No. of EVs supported 2.80 lakh 16.72 lakh 26.59 lakh ~21.30 lakh
/sold
(up to 31.03.2026)
(e): Supported by these initiatives/ schemes, the EV adoption has seen a multifold increase, rising
from 0.08% in FY 2015-16 to 8.26% in FY 2025-26.
This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa
Varma in a written reply in the Lok Sabha today.
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