CAG Flags Irregularities in FAME EV Incentive Scheme
India's FAME Scheme audit reveals ₹468 crore in non-compliant incentives. The CAG report found five EV manufacturers failed domestic localization requirements. Only 148 of 2,877 approved charging stations were operational, exposing infrastructure delays and monitoring gaps. India has enforced penalties including refunds and debarment against non-compliant automakers.
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.
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Last reviewed on 24 August 2026
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