Context
The Comptroller and Auditor General (CAG) flagged ₹467.96 crore of FAME incentives given to EV manufacturers violating localisation norms. It also highlighted major delays in FAME-II charging infrastructure, with only 148 of 2,877 approved city charging stations commissioned.
Explanation
- FAME India (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) was launched in 2015 by the Ministry of Heavy Industries to promote electric and hybrid mobility.
- FAME-I (2015–2019) supported demand incentives, technology development, pilot projects and charging infrastructure.
- FAME-II (2019–2024) had an enhanced outlay and greater emphasis on public/shared transport, e-buses and charging infrastructure.
- Demand incentives reduce the upfront cost of eligible EVs to encourage adoption.
- The Phased Manufacturing Programme (PMP) promoted progressive localisation/domestic manufacturing of EV components and reduced import dependence.
- Original Equipment Manufacturers (OEMs) had to satisfy prescribed eligibility and localisation requirements to receive incentives.
- CAG, a constitutional authority under Article 148, audits government expenditure and promotes financial accountability.
- Charging infrastructure remains critical for reducing range anxiety and accelerating EV adoption.
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FAME Scheme Audit and EV Localisation