FAME-II AND PM E-DRIVE SCHEMES

1. At a Glance

• Twin demand-side incentive schemes of the Ministry of Heavy Industries (MHI) to accelerate EV adoption in India via upfront purchase-price subsidies, charging infrastructure, and e-bus deployment [S1][S2].
• FAME-II (2019-2024) was the second phase of the FAME India programme; PM E-DRIVE (2024 onwards) is its successor with a wider vehicle basket [S2][S3].
• Examinable as a flagship GS-III intersection of climate action, industrial policy, urban transport, and energy security.

2. Why in the News

• 17 Mar 2026 PIB release: cumulative tally — 16,16,215 EVs incentivised under FAME-II and 18,01,307 EVs under PM E-DRIVE (as on 12.03.2026) [S5].
• MHI extended PM E-DRIVE by 2 years, from 31 March 2026 to 31 March 2028 [S4].

3. Background & Evolution

• 2015: FAME-I launched under National Electric Mobility Mission Plan (NEMMP) 2020.
• 1 April 2019 – 31 March 2024: FAME-II implemented with ₹11,500 crore outlay over 5 years [S2].
• 4 June 2019: MHI issued Expression of Interest (EoI) for selecting cities for electric bus deployment under FAME-II [S5].
• 1 Apr 2024 – 30 Sep 2024: Stop-gap Electric Mobility Promotion Scheme (EMPS) 2024, outlay ₹778 crore, for e-2W and e-3W only [S2].
• 29 Sep 2024: PM E-DRIVE notified, ₹10,900 crore, till 31 March 2026; EMPS 2024 subsumed into it [S2][S1].
• 2026: PM E-DRIVE extended till 31 March 2028 [S4].

4. Core Static Facts

• Full form: PM E-DRIVE = Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement [S2].
• Nodal ministry: Ministry of Heavy Industries (MHI) [S1][S2].
• FAME-II outlay: ₹11,500 crore (FY20-FY24) [S2].
• PM E-DRIVE outlay: ₹10,900 crore [S1], split as:
• ₹3,679 cr — demand incentives (e-2W, e-3W, e-ambulance, e-truck, emerging EVs) [S1]
• ₹4,391 cr — procurement of 14,028 e-buses by STUs/public transport agencies [S1]
• ₹2,000 cr — EV Public Charging Stations (PCS) [S1]
• ₹780 cr — upgradation of MHI testing agencies [S1]
• ₹500 cr each — e-ambulances and e-trucks [S1]
• Charging targets: 22,100 fast chargers for e-4W; 1,800 for e-buses; 48,400 for e-2W/3W [S1].
• Excludes: e-cars/e-4W passenger vehicles from direct demand incentive (covered indirectly via PCS and PLI).

5. Multi-Dimensional Analysis

Economic - Combines demand-pull (subsidy) with supply-push (PLI-Auto, ACC battery PLI) [S2]. - Targets reduction in crude oil import bill and fosters domestic EV component value-chain.

Environmental - Reduces tail-pipe PM2.5/NOx in urban areas; aligns with India's 2070 net-zero commitment under UNFCCC. - E-bus push targets the most fuel-intensive segment of urban transport.

Administrative / Federal - Cities for e-bus deployment selected by competitive EoI route — performance-based federalism [S5]. - District-level disaggregation now reported (e.g., Palghar: 6,122 EVs under FAME-II, 1,314 under PM E-DRIVE) [S5].

Technological - ₹780 cr earmarked to upgrade testing agencies (ARAI, ICAT, etc.) under MHI — critical for AIS standards and battery safety [S1]. - Encourages emerging segments — e-trucks, e-ambulances, fast-charging ecosystem.

Governance - Subsidy as upfront price reduction at point of sale — eliminates beneficiary-level reimbursement delays [S5]. - Past FAME-II misuse (localisation-norm violations by some OEMs) prompted tighter PMP/AIS compliance audits.

6. Recent Developments (last 12-18 months)

• 29 Sep 2024: PM E-DRIVE notified with ₹10,900 cr outlay [S1][S2].
• 1 Apr – 30 Sep 2024: EMPS 2024 ran as bridge scheme (₹778 cr) [S2].
• 2025-26: PM E-DRIVE extended by 2 years to 31 March 2028 [S4].
• 12 Mar 2026 cut-off: 18,01,307 EVs incentivised under PM E-DRIVE [S5].
• 17 Mar 2026: PIB clarifies district-wise (Palghar) deployment data [S5].

7. Prelims Hooks

• Nodal ministry for FAME and PM E-DRIVE: Ministry of Heavy Industries (NOT MoRTH, NOT MNRE) [S1][S2].
• FAME-II tenure: 1 April 2019 to 31 March 2024 [S2].
• FAME-II total outlay: ₹11,500 crore [S2].
• EMPS 2024 outlay: ₹778 crore, 6-month bridge scheme [S2].
• PM E-DRIVE notified on 29 September 2024 [S2].
• PM E-DRIVE outlay: ₹10,900 crore [S1].
• PM E-DRIVE e-bus target: 14,028 e-buses for STUs [S1].
• PM E-DRIVE testing-agency upgrade outlay: ₹780 crore [S1].
• PM E-DRIVE extended to 31 March 2028 [S4].
• FAME-II cities for e-buses selected via EoI dated 4 June 2019 [S5].
• Cumulative incentivised EVs under FAME-II: 16,16,215 [S5].
• PM E-DRIVE EV PCS outlay: ₹2,000 crore [S1].
• E-cars/e-4Ws are not directly incentivised under PM E-DRIVE demand component.

8. Mains Relevance

• GS-III: Infrastructure (energy, transport); Conservation/environment; Indian economy — growth & development.
• GS-II: Government policies and interventions for development.
• Possible question stems: 1. "Discuss how the transition from FAME-II to PM E-DRIVE reflects a maturing of India's EV policy. Examine the challenges in achieving 30% EV penetration by 2030." 2. "Demand incentives alone cannot drive EV adoption without parallel charging and battery ecosystems. Critically analyse." 3. "Evaluate the role of the Ministry of Heavy Industries in India's clean mobility transition."

9. Related Topics to Study Next

• PLI-Auto & ACC Battery PLI — supply-side complement to PM E-DRIVE.
• NEMMP 2020 — original policy parent.
• PM-eBus Sewa Scheme (MoHUA) — 10,000 e-buses, complements MHI's e-bus push.
• Battery Swapping Policy (NITI Aayog draft) — alternative to fixed-battery EVs.
• Go Electric campaign / BEE charging guidelines — demand-side awareness.
• India's NDC under UNFCCC — context for transport decarbonisation.
• National Green Hydrogen Mission — parallel clean-mobility track for heavy vehicles.
• GST rate on EVs (5%) — fiscal complement to subsidy.

10. Common Errors / Trap Areas

• Wrong ministry: PM E-DRIVE is under MHI, not MoRTH/MoP/MNRE.
• Confusing PM E-DRIVE with PM-eBus Sewa — latter is by MoHUA for city bus operations (10,000 buses).
• EMPS 2024 ≠ FAME-III — it was a 6-month bridge, now subsumed into PM E-DRIVE.
• Outlay mix-up: FAME-II = ₹11,500 cr; PM E-DRIVE = ₹10,900 cr.
• E-cars not directly subsidised under PM E-DRIVE demand incentive.
• End date: PM E-DRIVE originally till 31.03.2026, now extended to 31.03.2028.

11. Sources

• [S1] Cabinet approves PM E-DRIVE Scheme — https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2053959 — (tier: 1)
• [S2] Status and Future of FAME Scheme for Electric Vehicles — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2152528 — (tier: 1)
• [S3] PM E-DRIVE Scheme (overview) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2085205 — (tier: 1)
• [S4] MHI extends tenure of PM E-DRIVE Scheme by 2 years to 31 March 2028 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2154408 — (tier: 1)
• [S5] FAME-II and PM E-DRIVE Schemes (17 Mar 2026 PIB) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2241269 — (tier: 1)