**Summary:**
This document summarizes the Ministry of Heavy Industries' response to Lok Sabha Unstarred Question No. 3845, answered on August 12, 2025, regarding FAME-II subsidies and domestic EV supply chain depth.
Key points include:
* **Domestic Value Addition:** Domestic Value Addition was not a parameter under the FAME-II Scheme. The scheme focused on domestic manufacturing of EVs and components through the Phased Manufacturing Programme (PMP).
* **OEM Penalties:** Six Original Equipment Manufacturers (OEMs) were penalized for violating PMP guidelines under FAME-II. Three of these OEMs were deregistered and debarred from the scheme.
* **Component Import Monitoring:** The FAME-II scheme employed PMP timelines to ensure progressive localization and prevent component imports through Semi Knocked Down (SKD) and Completely Knocked Down (CKD) loopholes. The FAME-II scheme concluded on March 31, 2024.
* **Lifecycle Cost Assessment:** The Ministry of Heavy Industries has not conducted lifecycle cost assessments of imported EVs.
* **WTO Compliance and Make in India:** The Ministry aims to maintain a level playing field for both Indian and foreign OEMs within the current EV promotion scheme while prioritizing the "Make in India" initiative.
Key Entities Referenced
Ministry of Heavy Industries: A ministry in the Government of India responsible for the development of the heavy industries sector.
SHRI BAIJAYANT PANDA: A member of Lok Sabha who posed a question regarding FAME subsidies and the domestic EV supply chain depth.
Faster Adoption and Manufacturing of Hybrid Electric Vehicles (FAMEII): An initiative by the Indian government to promote the adoption and manufacturing of hybrid and electric vehicles.
Phased Manufacturing Programme (PMP): A government program designed to promote domestic manufacturing by setting progressive localisation targets for components.
Original Equipment Manufacturers (OEMs): Companies that manufacture products or components that are used by another company to produce finished goods.
Make in India: An initiative by the Government of India to encourage companies to manufacture their products in India.
SHRI BHUPATHIRAJU SRINIVASA VARMA: The Minister of State for Heavy Industries who provided the answers to the questions posed in the Lok Sabha.
World Trade Organization (WTO): An intergovernmental organization that regulates and facilitates international trade.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 3845
ANSWERED ON 12.08.2025
FAME SUBSIDIES AND DOMESTIC EV SUPPLY CHAIN DEPTH
3845. SHRI BAIJAYANT PANDA:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) the percentage of Faster Adoption and Manufacturing of Hybrid & Electric Vehicles-
(FAME)-II eligible vehicles in FY 2023-24 that met more than 50% domestic value addition;
(b) the number of Original equipment manufacturers delisted or penalised for not meeting phased
manufacturing programme (PMP) thresholds;
(c) the policy mechanisms in place to ensure that components are not imported in
SKD/CKD(Semi Knocked Down and Completely Knocked Down) from under loopholes;
(d) the mechanisms in place for lifecycle cost assessment of imported e-vehicles; and
(e) the roadmap to make the EV subsidy regime WTO-compliant while preserving India’s Make
in India priority.
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): Domestic Value Addition was not a parameter under the FAME-II Scheme. FAME-II
scheme required domestic manufacturing of EVs including domestic manufacturing of
components through the Phased Manufacturing Programme (PMP).
(b): Under the FAME-II scheme, 6 OEMs have been penalized on account of violation of
PMP, out of which 3 OEMs have been de-registered and debarred under the scheme.
(c): To ensure that components are not imported in SKD/CKD (Semi Knocked Down and
Completely Knocked Down), OEMs were required to follow PMP timelines, which ensured
progressive localisation. The FAME-II scheme ended on 31.03.2024.
(d): No such assessment has been done by Ministry of Heavy Industries.
(e): The scheme, currently implemented by the Ministry of Heavy Industries for the
promotion of the electric vehicle (EV) ecosystem, aims to provide a level playing field for Indian
original equipment manufacturers (OEMs) as well as those from abroad, while preserving
India’s Make in India priority.
.
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