CAG Flags Irregularities in FAME EV Incentive Scheme

A recent report by the Comptroller and Auditor General (CAG) has identified significant irregularities in the implementation of India's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. According to the audit, approximately ₹468 crore in demand incentives were disbursed to which five electric vehicle manufacturers which did not comply with the domestic localisation requirements prescribed under the scheme. The report also highlighted shortcomings in subsidy verification and monitoring mechanisms.

The audit further raised concerns over delays in EV charging infrastructure deployment. Out of the 2,877 charging stations approved under FAME-II, only 148 had been commissioned by implementing agencies at the time of review. It is worth noting that penal measures including refunds and debarment of non-compliant OEMs have already been enforced, an approach that could serve as a model for strengthening enforcement across other incentive-linked schemes.