**Executive Summary**
This document is a response to an unstarred question regarding new production capacity for electric vehicles and battery manufacturing under the FAME Phase-II Scheme. The response clarifies the status of related schemes and proposals as of December 19, 2025, including the PLI Scheme for ACC battery storage and the MSE-GIFT Scheme. No new national plan for establishing integrated "Future Mobility Parks" is under consideration.
**Key Points / Main Content**
* **FAME Phase-II Scheme:**
* Concluded on March 31, 2024.
* Did not provide for setting up new production capacity for electric vehicles or battery manufacturing.
* **PLI Scheme for ACC Battery Storage:**
* Notified on June 9, 2021.
* Budgetary outlay of Rs.18,100 crore.
* Aims to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries.
* One beneficiary firm has established a giga-scale ACC manufacturing plant with an installed capacity of 1 GWh and has commenced pilot production.
* **MSE-GIFT Scheme:**
* Implemented by the Ministry of MSME through SIDBI.
* Provides support to MSEs in accessing institutional finance at a concessional rate.
* Aims to facilitate the adoption of clean/green technologies, including those related to the automobile sector, electric vehicles, and charging infrastructure.
* Valid until 2025-26.
* **Future Mobility Parks:**
* No new national plan to establish integrated "Future Mobility Parks" is under consideration.
**Impact Analysis**
**MSEs**
*Impact:*
Can access institutional finance at a concessional rate to adopt clean/green technologies for the automobile sector, electric vehicles, and charging infrastructure, under the MSE-GIFT Scheme.
*Action Required:*
MSEs should explore the MSE-GIFT Scheme through SIDBI for accessing finance to adopt green technologies.
**ACC Battery Manufacturers**
*Impact:*
The PLI Scheme “National Programme on Advanced Chemistry Cell (ACC) Battery Storage" aims to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries, providing opportunities for manufacturers.
*Action Required:*
Follow the available programmes and incentives.
Key Entities Referenced
FAME Phase-II Scheme: Scheme related to electric vehicle and battery manufacturing capacity.
Production Linked Incentive (PLI) Scheme “National Programme on Advanced Chemistry Cell (ACC) Battery Storage: Scheme to establish a domestic manufacturing ecosystem for ACC batteries
Ministry of Heavy Industries: The primary ministry answering the question.
MSE -Green Investments and Financing for Transformation Scheme (MSE-GIFT Scheme): Scheme implemented by the Ministry of MSME through SIDBI to support MSEs.
Ministry of MSME: Ministry implementing MSE-GIFT Scheme.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
RAJYA SABHA
UNSTARRED QUESTION NO. 2312
ANSWERED ON 19.12.2025
NEW PRODUCTION CAPACITY FOR ELECTRIC VEHICLES AND BATTERY
MANUFACTURING UNDER FAME PHASE-II SCHEME
2312. SHRI TEJVEER SINGH:
Will the Minister of Heavy Industries be pleased to state:
(a) the progress made in setting up new production capacity for electric vehicles and battery
manufacturing under the recently revised FAME Phase-II Scheme and the upcoming EV
policy;
(b) whether Government is considering to provide special incentives to MSMEs for adopting
advanced robotics and green technologies in the automobile and machinery sectors, if so, the
details thereof; and
(c) whether the Ministry is formulating any new national plan to establish integrated “Future
Mobility Parks” to make India a global auto hub, if so the details thereof?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): The FAME Phase-II Scheme, concluded on 31.03.2024, had no provision of setting up
new production capacity for electric vehicles or battery manufacturing. However, the
Government on 09.06.2021 notified the Production Linked Incentive (PLI) Scheme “National
Programme on Advanced Chemistry Cell (ACC) Battery Storage” in the country with a
budgetary outlay of Rs.18,100 crore. This scheme aims to establish a competitive domestic
manufacturing ecosystem for 50 GWh of ACC batteries. Under this Scheme, so far, one
beneficiary firm has established a giga-scale ACC manufacturing plant with an installed
capacity of 1 GWh. It has commenced pilot production.
(b): The Ministry of MSME is implementing "MSE -Green Investments and Financing for
Transformation Scheme (MSE-GIFT Scheme)" through SIDBI (Implementing Agency). The
overall objective of the MSME GIFT Scheme is to provide support to the MSEs in accessing
institutional finance at a concessional rate for adopting clean / green technologies including
technologies of Automobile Sector and Electric Vehicles and its Charging Infrastructure and
help them to transform into green and sustainable business operations. The Scheme is valid
till 2025-26.
(c): No such proposal is presently under consideration with the Ministry of Heavy
Industries.
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