Lok Sabha Question No. 258 (STARRED), answered on 2026-03-10
Subject: FAME-II Scheme
Ministry: HEAVY INDUSTRIES
Asked by: Dr. D Ravi Kumar

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA

## STARRED QUESTION NO. 258 ANSWERED ON 10.03.2026

## FAME-II SCHEME

## *258. DR. D RAVI KUMAR:

## Will the Minister of HEAVY INDUSTRIES be pleased to state:

- (a) whether the Government is aware that India's heavy industry sector recorded steady growth in 2023-24, with the Index of Industrial Production (IIP) for manufacturing growing by about 5.9 per cent, led by automobiles, capital goods and industrial machinery, if so, the details thereof;
- (b) the measures taken to strengthen the FAME-II scheme, under which over 12 lakh electric vehicles have availed incentives as of 2024;
- (c) whether the Government  proposes additional policy or financial support for domestic manufacturing of advanced automotive components, capital equipment and defence-grade machinery, if so, the details thereof; and
- (d) the steps taken to enhance global competitiveness, technology adoption and reduction of import dependence in the heavy industry sector?

## ANSWER THE MINISTER OF HEAVY INDUSTRIES (SHRI H.D. KUMARASWAMY)

(a) to (d): A Statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA  STARRED QUESTION NO.258 FOR 10.03.2026 ASKED BY DR. D RAVI KUMAR REGARDING 'FAME-II SCHEME'

- (a): Yes,  India's  Index  of  Industrial  Production  (IIP)  registered  a  growth  of  5.9  percent  in  2023-24, supported by 5.5 percent growth in the manufacturing sector.  As per sector-wise data published by Ministry of Statistics and Programme Implementation (MoSPI) on Mining, Manufacturing and Electricity, these sectors do not  exhibit  the  break-up  of  specific  industry  sub-groups  such  as  automobiles,  capital  goods,  or  industrial machinery.
- (b): FAME-II Scheme which was implemented from 01.04.2019 till 31.03.2024, has supported the sale of approximately 16.71 lakh electric vehicles including e-2Ws, e-3Ws and e-4Ws as per details provided below :

| Sl. No.   | Wheeler Type   | Total No. of Vehicles   |
|-----------|----------------|-------------------------|
| 1         | 2 wheelers     | 14,69,343               |
| 2         | 3 wheelers     | 1,78,952                |
| 3         | 4 wheelers     | 23,311                  |
| Total     |                | 16,71,606               |

Besides above, 6,862 e-buses were sanctioned under FAME-II Scheme for various cities out of which 5,195 e-buses have been deployed as on 28.02.2026.  The scheme also includes support of Rs.912.50 crore for setting up of 9,332 Electric Vehicle Public Charging Stations (EV PCS) across India.

Further, PM E-DRIVE Scheme with an outlay of Rs.10,900 crore has been implemented w.e.f. 1 st April, 2024 till 31 st   March, 2028.  The scheme includes support for 28.27 lakh EVs including 5,643 e-trucks and 14,028 e-buses.  Under PM E-DRIVE Scheme an allocation of Rs.2,000 crore has been made for deployment of EV PCS and Rs.780 crore for upgradation of testing agencies.

- (c) & (d): Government approved the Production  Linked  Incentive  (PLI)  Scheme  for  Automobile  and Auto Components Industry in India (PLI-Auto) for enhancing India's manufacturing capabilities for advanced automotive products with a budgetary outlay of Rs.25,938 crore.  PLI-Auto provides financial incentives to boost domestic manufacturing of Advanced Automotive Technology (AAT) vehicles and AAT components and attract investments in the automotive manufacturing value chain.

In order to encourage the technology development and to augment the indigenous manufacturing in the Capital Goods sector, Ministry of Heavy Industries (MHI) is implementing the Scheme for 'Enhancement of Competitiveness in the Indian Capital Goods Sector - Phase II'.

Under  Phase  II  of  the  scheme,  a  total  of  29  projects  with  project  cost  of  Rs.891.37  crore  and Government contribution of Rs.714.64 crore have been sanctioned so far.  These 29 projects include 7 Centres of Excellence (CoEs), 4 Common Engineering Facility Centres (CEFCs), 6 Testing and Certification Centre, 9 Industry Accelerators for Technology Development and 3 projects for Creation of Qualifications Packs for skill level 6 and above.

The 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet', which aims to establish  6,000  Metric  Tons  per  Annum  (MTPA)  of  integrated  Rare  Earth  Permanent  Magnet  (REPM) manufacturing capability, was notified on 15.12.2025. The total financial outlay of the scheme is Rs.7,280 crore, comprising a sales-linked incentives of Rs.6,450 crore on REPM sales for five (5) years and capital subsidy of Rs.750 crore.

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