Rajya Sabha Unstarred Question No. 1524, answered on 12.12.2025 by the Minister of State for Heavy Industries (Shri Bhupathiraju Srinivasa Varma), concerns the EV subsidy scheme under FAME-II.
The response clarifies that under FAME-II, no grants were given to EV manufacturers. Instead, incentives were provided to consumers as upfront reductions in the purchase price, which were then reimbursed to the EV manufacturers. Out of a total outlay of Rs. 7,048 crore for demand incentives for electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), and four-wheelers (e-4Ws), Rs. 6,559 crore has been disbursed.
The Ministry of Heavy Industries has not set state-wise zero-emission vehicle adoption targets. However, in Uttar Pradesh, 92,572 EVs have been supported under FAME-II, including 57,066 e-2Ws, 34,768 e-3Ws, and 738 e-4Ws.
Key Entities Referenced
FAME-II: Faster Adoption and Manufacturing of Electric Vehicles in India Phase II; EV subsidy scheme
Ministry of Heavy Industries: Indian government ministry responsible for the FAME-II scheme
Uttar Pradesh: Indian state where the impact of FAME-II on EV adoption is being assessed
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
RAJYA SABHA
UNSTARRED QUESTION NO. 1524
ANSWERED ON 12.12.2025
EV SUBSIDY SCHEME UNDER FAME-II
1524. SMT. GEETA ALIAS CHANDRAPRABHA:
Will the Minister of Heavy Industries be pleased to state:
(a) whether the Ministry has reviewed the impact of recent enforcement action under the
FAME-II subsidy scheme on smaller electric-vehicle manufacturers and on overall grant
utilisation;
(b) whether the Ministry has assessed the extent to which zero-emission vehicle adoption
targets in Uttar Pradesh have been influenced by the supply and uptake of EVs supported under
FAME-II; and
(c) whether any revisions to these targets or related policy adjustments are under consideration
to strengthen EV adoption in the State?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): Under the FAME-II scheme, no grant was given to electric-vehicle (EV) manufacturers
including smaller EV manufacturers. Instead, incentives/ concessions were provided to consumers
(buyers/end users) in the form of an upfront reduction in the purchase price of electric vehicles, which
facilitated wider adoption. These incentives were reimbursed to the EV manufacturers by the
Government of India. Further, out of total outlay of Rs.7,048 crore towards demand incentive for e-
2Ws, e-3Ws and e-4Ws, an amount of Rs.6,559 crore has already been disbursed under the FAME-II
Scheme.
(b) & (c): The Ministry of Heavy Industries (MHI) /Central Government has not set any state-
wise zero-emission vehicle adoption targets and therefore no such assessment has been carried out by
MHI. However, in the state of Uttar Pradesh, 92,572 nos. of EVs were supported under FAME-II
(including 57,066 e-2Ws, 34,768 e-3Ws, and 738 e-4Ws).
.
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