In a written reply in the Rajya Sabha, Bhupathiraju Srinivasa Varma, Minister of State, Steel and Heavy Industries clarified that no incentive is given to electric vehicle manufacturers, under FAME-India Scheme phase-II. The incentive/concession is provided to consumers in the form of an upfront reduction in purchase price of hybrid and electric vehicles to enable wider adoption, which is reimbursed to the OEM (EV manufacturers) by the government.
Under FAME-India Scheme phase-II, the demand incentive/subsidy is passed on to the people who purchased vehicles from the OEM in the form of an upfront reduction in purchase price of hybrid and electric vehicles. Category-wise subsidy reimbursed to OEMs towards the incentive claimed by them during April 1, 2019 to March 31, 2024 is as under:
| Sl. No. | Segment | Incentive Amount Paid |
| 1 | e-2w | INR 4,375.59 crore |
| 2 | e-3w | INR 845.61 crore |
| 3 | e-4w | INR 399.12 crore |
| 4 | e-buses * | INR 1,322.00 crore |
| Total for above | 6,942.32 crore | |
| (Source: PIB) |
* Subsidy amount released to State Transport Units
The Ministry of Heavy Industries has notified the Scheme namely ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India’ on March 15 to attract investment from global EV manufactures and promote India as manufacturing destination for e- vehicles.
First stakeholder consultation on SPMEPCI was held on April 18 which was attended by major Original Equipment Manufacturers (OEMs).