Kumaraswamy urges OEMs to follow PM E-Drive, PLI scheme guidelines

Minister of Heavy Industries HD Kumaraswamy on Tuesday urged the automaker to comply with the guidelines while availing the benefits under the newly launched PM E-Drive and other Production-Linked Incentives (PLI) schemes.

"I request manufacturers [to adhere to guidelines]…because some companies were not following the guidelines of the scheme [FAME]...I don’t want to any scope for controversy while availing the scheme," Kumaraswamy said while launching the new PM E-Drive scheme in Delhi.

The minister's comments came as 13 automakers were found claiming subsidies under the FAME scheme by violating the scheme guidelines.

To ensure localisation, the government has rolled out the Phased Manufacturing Program (PMP) that requires electric vehicle makers to source and assemble a significant number of electric vehicle components locally. 

OEMs were obliged to follow the PMP guidelines on localization under the FAME scheme for the vehicles to be eligible for the subsidies. The same PMP guidelines will have to be followed by the OEMs to be eligible for support under the PM E-DRIVE. 

Seven automakers - Hero Electric, Ampere, Okinawa Autotech, Revolt, Benling India, Amo Mobility, and Lohia Auto - were found violating the local sourcing norms by using imported components to claim FAME incentives.

In addition, four other automakers - Ola Electric, TVS Motor, Hero MotoCorp (Vida) and Ather Energy were found to have breached the ex-factory price norms in claiming FAME subsidies. 

The newly launched Rs 10,900-crore PM E-Drive scheme supersedes the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) II scheme. The temporary Electric Mobility Promotion Scheme (EMPS), which expired on September 30, has been subsumed under the PM E-Drive scheme.

The government aims to provide demand incentives worth Rs 3,679 crore on the purchase of electric two-wheelers, three-wheelers, ambulances and trucks, while Rs 7,171 crore has been set aside to boost the adoption of electric buses, improve public charging infrastructure and upgrade testing infrastructure.

The new scheme is more comprehensive and has a bigger outlay with more focus on public transport and charging infrastructure, compared with the five-year FAME II scheme.

READ MORE: Government likely to end demand subsidies for e2W, e3W in 2026