Executive Summary:
This document is a response to questions raised in Lok Sabha regarding the FAME II Scheme for Electric Vehicles. It details the status of subsidy disbursements as of March 2025, addresses safety concerns related to EV battery fires, and explains the transition from FAME II to subsequent schemes like EMPS 2024 and PM EDRIVE. The FAME II scheme concluded on March 31, 2024, and is succeeded by PM EDRIVE, effective until March 31, 2026.
Key Points / Main Content:
FAME II Subsidy Disbursement (as of March 31, 2025):
* Total demand incentive disbursed: ₹6,559 crore.
* Category-wise breakdown:
* 2 Wheelers: 14,28,882 EVs, ₹4,912 crore.
* 3 Wheelers: 1,64,718 EVs, ₹1,110 crore.
* 4 Wheelers: 22,615 EVs, ₹537 crore.
FAME I Scheme:
* The scheme ended on March 31, 2019.
* Questions regarding 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. 5419E, December 27, 2021, as per AIS038Rev. 1 2015).
* Amendments to Automotive Industry Standards (AIS:156 and AIS:038 Rev 2) are applicable from December 1, 2022, with some clauses effective from March 31, 2023, enhancing EV battery standards.
* Conformity of Production (COP) requirements notified (G.S.R. 888 E, December 19, 2022) for all EV categories.
* Construction Equipment Vehicles with Electric Power Train must meet AIS174 requirements (G.S.R. 721E, November 21, 2024).
Successor Schemes to FAME II:
* FAME II was implemented from April 1, 2019, to March 31, 2024.
* Electric Mobility Promotion Scheme (EMPS) 2024 was implemented for six months (April 1, 2024 – September 30, 2024) with an outlay of ₹778 crore.
* PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme: Notified on September 29, 2024, with an outlay of ₹10,900 crore, until March 31, 2026.
* Provides demand incentives for e2W, e3W, etrucks, and eambulances.
* Includes grants for ebuses, EV public charging stations, and testing agency upgrades.
* EMPS 2024 is now subsumed under the PM E DRIVE Scheme.
Impact Analysis:
Electric Vehicle Manufacturers:
* Impact: Must adhere to enhanced safety and technical requirements for EV batteries and components as per updated AIS standards.
* Action Required: Ensure compliance with amended AIS standards and Conformity of Production (COP) requirements.
Consumers:
* Impact: Benefit from safer electric vehicles due to enhanced testing standards and manufacturer accountability. Continued access to incentives through the PM EDRIVE scheme.
* Action Required: Be aware of the safety standards and demand safer EVs.
Testing Agencies:
* Impact: Potential upgrades required to meet the testing demands of the PM EDRIVE scheme.
* Action Required: Prepare for upgrades to meet testing requirements under PM EDRIVE.
Ministry of Road Transport and Highways (MoRTH):
* Impact: Responsible for implementing and updating safety standards for electric vehicles.
* Action Required: Continue to monitor and update safety standards for EVs.
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 competitiveness of the heavy industries sector, including the electric vehicle industry.
Electric Mobility Promotion Scheme EMPS 2024: A scheme launched by the Ministry of Heavy Industries to incentivize electric two-wheelers (e2W) and electric three-wheelers (e3W) for a period of six months.
PM Electric Drive Revolution in Innovative Vehicle Enhancement PM EDRIVE Scheme: A scheme notified by the Ministry of Heavy Industries to promote electric vehicles, including e2W, e3W, etrucks, and e ambulances, as well as support the establishment of EV charging infrastructure.
Ministry of Road Transport Highways: The Indian government ministry responsible for the development and maintenance of the national highways and transport infrastructure.
Automotive Industry Standards AIS: Standards developed by the Automotive Research Association of India (ARAI) for the automotive industry, including safety and performance requirements for electric vehicles.
Bureau of Indian Standard Act, 2016: The Act of the Parliament of India that established the Bureau of Indian Standards (BIS) as the National Standards Body of India.
FAMEI Scheme: Faster Adoption and Manufacturing of Electric Vehicles in India Phase I scheme, initial phase to promote electric vehicles.
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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