A Comptroller and Auditor General report tabled in Parliament found five original equipment manufacturers received 467.96 crore rupees in demand incentives under India's FAME scheme despite violating localisation norms under the Phased Manufacturing Programme. Three OEMs may have circumvented the 1.5 lakh rupee price cap for e-2-wheelers by selling onboard chargers separately, receiving 1,418.62 crore rupees in incentives for those models. The audit also uncovered portal inconsistencies that prevented verification of FAME-I subsidy payments, with conflicting figures showing claims ranging from 201.84 crore rupees to negative 423.28 crore rupees.
Why it matters: The findings expose weak compliance checks in India's flagship EV subsidy programme, raising questions about due diligence for public procurement and OEM eligibility. For charging operators, the report notes only 148 of 2,877 approved FAME-II charging stations have been delivered, signalling persistent infrastructure rollout delays.