Executive Summary:
This document summarizes the Indian government's response to questions regarding the FAME II scheme for electric vehicles, its status, and future plans. It provides details on subsidy disbursement under FAME II as of March 2025, clarifies safety measures for electric vehicle batteries, and outlines successor schemes to FAME II, including the EMPS 2024 and PM E-DRIVE scheme. Key dates include the end of FAME I (March 2019) and FAME II (March 2024) as well as the implementation periods for EMPS 2024 (April - September 2024) and PM E-DRIVE (until March 2026).
Key Points / Main Content:
FAME II Scheme Status (as of March 31, 2025):
* Total demand incentive disbursed: ₹6,559 crore.
* Category-wise disbursement:
* 2-Wheelers: ₹4,912 crore for 14,28,882 vehicles.
* 3-Wheelers: ₹1,110 crore for 1,64,718 vehicles.
* 4-Wheelers: ₹537 crore for 22,615 vehicles.
FAME I Scheme Clarification:
* The FAME I scheme concluded on March 31, 2019; therefore, delays in reimbursement are not applicable.
Electric Vehicle Battery Safety Measures:
* Ministry of Road Transport and Highways (MoRTH) has notified safety requirements for electric power train vehicles (S.O. 5419(E) dated December 27, 2021).
* Amendments to Automotive Industry Standards (AIS 156 and AIS 038 Rev 2) were implemented from December 1, 2022, with some clauses effective from March 31, 2023, enhancing EV battery standards.
* Requirements for Conformity of Production (COP) for all EV categories were issued on December 19, 2022 (G.S.R. 888(E)).
* Construction Equipment Vehicles with Electric Power Trains must meet AIS174 requirements (G.S.R. 721(E) dated November 21, 2024).
Successor Schemes to FAME II:
* Electric Mobility Promotion Scheme (EMPS) 2024: Implemented from April 1, 2024, to September 30, 2024, with an outlay of ₹778 crore, focused on e2W and e3W.
* PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme: Notified on September 29, 2024, with an outlay of ₹10,900 crore, effective until March 31, 2026. It includes incentives for e2W, e3W, etrucks, and e-ambulances, grants for ebuses, establishment of EV public charging stations, and upgrading testing agencies.
* EMPS 2024 has been subsumed under the PM E-DRIVE Scheme.
Impact Analysis:
Electric Vehicle Manufacturers:
* Impact: Affected by the disbursement of subsidies under FAME II, adherence to enhanced safety standards, and the transition to the PM E-DRIVE scheme.
* Action Required: Comply with updated AIS standards for EV batteries, adapt to the PM E-DRIVE scheme for continued incentives, and ensure conformity of production.
Consumers of Electric Vehicles:
* Impact: Benefit from subsidized EV purchases under FAME II and PM E-DRIVE, as well as enhanced safety standards for EV batteries.
* Action Required: Be aware of the incentives available under the PM E-DRIVE scheme and choose EVs that comply with the latest safety standards.
Testing Agencies:
* Impact: Responsible for implementing and enforcing the updated testing standards for EV batteries and components.
* Action Required: Upgrade testing facilities to meet the requirements of the updated AIS standards and COP guidelines.
Ministry of Road Transport and Highways (MoRTH):
* Impact: Responsible for setting and updating safety standards for electric vehicles.
* Action Required: Continue to develop and refine safety standards for electric vehicles.
Key Entities Referenced
FAMEII Scheme: Faster Adoption and Manufacturing of Electric Vehicles in India Phase II scheme, aimed at promoting the adoption of electric vehicles through subsidies and incentives.
Ministry of Heavy Industries: The Indian government ministry responsible for formulating policies and promoting the growth and development of heavy industries, including the electric vehicle sector.
Electric Mobility Promotion Scheme EMPS 2024: A scheme launched by the Ministry of Heavy Industries to incentivize electric two-wheelers and three-wheelers after FAME II, implemented from April 1, 2024, to September 30, 2024.
PM Electric Drive Revolution in Innovative Vehicle Enhancement PM EDRIVE Scheme: A scheme notified on September 29, 2024, to provide demand incentives for various electric vehicle categories and support EV infrastructure development, running until March 31, 2026.
Ministry of Road Transport Highways: The Indian government ministry responsible for the development and maintenance of the national highways and transport policies.
AIS:156: Automotive Industry Standard related to safety requirements for electric vehicles and their components.
AIS038Rev. 12015: Automotive Industry Standard related to Construction and Functional Safety requirements for electric power train vehicles.
Bureau of Indian Standard Act, 2016: Act of Indian Parliament that established the Bureau of Indian Standards (BIS), the national standards body of India.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 2670
ANSWERED ON 05.08.2025
STATUS AND FUTURE OF FAME SCHEME FOR ELECTRIC VEHICLES
2670. DR. AMAR SINGH:
SHRI SAPTAGIRI SANKAR ULAKA:
ADV DEAN KURIAKOSE:
SMT. JYOTSNA CHARANDAS MAHANT:
SHRI BALWANT BASWANT WANKHADE:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) the status of the phase-wise disbursement of subsidies under the FAME-II Scheme for electric
vehicles as of March 2025, including the total amount disbursed and category-wise beneficiary
details;
(b) the reasons for the delay in reimbursement to electric vehicle manufacturers under the
FAME-I Scheme and the action taken by the Government to resolve pending claims;
(c) the measures undertaken by the Government to address safety concerns related to electric
vehicle battery fires including testing standards, manufacturer accountability and consumer
safety protocols; and
(d) the reasons for not extending the FAME-II Scheme beyond March 2025 and whether any
successor scheme or policy framework is under consideration to support the continued adoption
of electric vehicles?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): The status of the disbursement of subsidies i.e. demand incentive under the FAME-II
Scheme for electric vehicles(EV) including e-2Ws, e-3Ws and e-4Ws as of 31st March, 2025
including the total amount disbursed and category-wise beneficiary details are as under:
Number of EVs for Total Demand Incentive
Electric Vehicle Category
which subsidy paid Disbursed (In Rs. crore)
2 Wheeler 14,28,882 4,912
3 Wheeler 1,64,718 1,110
4 Wheeler 22,615 537
Total 16,16,215 6,559
(b): The FAME-I Scheme has ended on 31.03.2019, therefore the question of delay does not
arise.
(c): The measures undertaken by the Government to address safety concerns related to
electric vehicle battery fires including testing standards, manufacturer accountability and
consumer safety protocols are as under:-2-
Ministry of Road Transport & Highways(MoRTH) vide S.O. 5419(E) dated 27th
December, 2021 has notified Construction and Functional Safety requirements for electric
power train vehicles as per AIS-038(Rev. 1)/2015, as amended from time to time.
MoRTH vide S.O. 4567 (E) dated 28th September, 2022 has brought amendment to the
Automotive Industry Standards (AIS), AIS:156 and AIS:038 (Rev 2). The said Amendments
are applicable w.e.f. 1st December, 2022 and some clauses of these AIS are effective from 31st
March, 2023. These amendments enhanced standards and technical requirements for EV
batteries and its components.
MoRTH has issued a notification, vide G.S.R. 888 (E) dated 19th December, 2022, for
the requirements of Conformity of Production (COP), in respect of all categories of electric
vehicles including Quadricycles, e-rickshaws, two wheelers and four wheelers.
MoRTH vide G.S.R. 721(E) dated 21st November, 2024 has notified that Construction
Equipment Vehicles fitted with Electric Power Train shall meet requirements as specified in
AIS-174, till the corresponding BIS specifications are notified under the Bureau of Indian
Standard Act, 2016 (11 of 2016).
(d): The FAME-II scheme was implemented from 1st April, 2019 to 31st March, 2024. To
ensure continuity in the incentivization of e-2W & e-3W, the Ministry of Heavy Industries
(MHI) launched the Electric Mobility Promotion Scheme (EMPS) 2024 which was implemented
with an outlay of ₹778 crore, for a period of six months from 1st April, 2024 to 30th September,
2024.
Thereafter, MHI notified the PM Electric Drive Revolution in Innovative Vehicle
Enhancement (PM E-DRIVE) Scheme on 29.09.2024, with an outlay of ₹10,900 crore, upto 31st
March, 2026. PM E-DRIVE provides demand incentive for e-2W, e-3W, e-trucks and e-
ambulances as well as grant for e-buses, setting up of EV public charging stations (EV PCS) and
upgradation of testing agencies. The EMPS 2024 has since been subsumed under the PM E-
DRIVE Scheme.
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