PMP for Electric Vehicles under FAME Phase-II

Phased Manufacturing Programme to promote indigenous manufacturing of Electric Vehicles, its assemblies / sub-assemblies and parts / sub-parts / inputs of the sub-assemblies

The Ministry of Heavy Industries has notified a Phased Manufacturing Programme (PMP) to promote indigenous manufacturing of Electric Vehicles, its assemblies / sub-assemblies and parts / sub-parts / inputs of the sub-assemblies. The PMP envisaged a graded duty structure to promote indigenous manufacturing over a period of time.

Another PMP for Electric/ Hybrid (xEV) Parts defines the effective date of indigenization of xEV parts to avail incentives under FAME Phase-II.

Since Automobile is a liberalized sector and 100% Foreign Direct Investment (FDI) by automatic route is permitted in this sector, the Ministry of Heavy Industries is not mandated to maintain the data related to the percentage of total electric two wheeler vehicles with a minimum range lesser than 80 kilometres per charge. Further, in order to increase the performance and efficiency of electric two wheelers, the Government has notified the minimum range 80 km per charge for electric two wheelers to be eligible for demand incentive under FAME India Scheme Phase-II.

Under Phase-II of FAME India Scheme, 2.31 lakhs Electric Vehicles have been supported till 01.02.2022 since 01st April, 2019 by way of Demand Incentive amounting to Rs. 827 Cr. (approximately).

This information was given by the Minister of State for Heavy Industries Krishan Pal Gurjar in a written reply in the Rajya Sabha on 11 February, 2022.