THE POLICY EDGE

Rajya Sabha: 332nd Report on the Ministry of Heavy Industries

SDG 11: Sustainable Cities and Communities | SDG 7: Affordable and Clean Energy | SDG 9: Industry, Innovation and Infrastructure | SDG 13: Climate Action

Ministry of Heavy Industries MoHI

The Department-related Parliamentary Standing Committee on Industry, chaired by Shri Tiruchi Siva, presented its 332nd Report to the Rajya Sabha on March 11, 2026 — specifically examining the Ministry of Heavy Industries' (MHI) actions regarding the Electric Vehicle (EV) ecosystem. The report provides a high-fidelity evaluation of the transition from the FAME-II scheme to the Electric Mobility Promotion Scheme (EMPS), 2024, and the subsequent FAME-III framework. A primary focus of the Committee was the need for stability in the EV incentive regime to maintain the momentum of domestic manufacturing and adoption. The report acts as a driver for structural improvements in charging infrastructure, recommending the integration of renewable energy sources and the standardization of battery swapping protocols. These parliamentary insights serve as a functional prerequisite for India to achieve its ambitious goal of 30% EV penetration by 2030, ensuring the long-term sustainability of the national transport sector.

Key Recommendations and Findings

  • Incentive Continuity: Recommending the timely rollout and clear long-term roadmap for the FAME-III scheme to prevent investment uncertainty among EV manufacturers.

  • Charging Infrastructure Expansion: Advocating for a mechanical increase in the density of public charging stations, particularly along national highways and in million-plus cities.

  • Renewable Energy Integration: Encouraging the use of solar and wind power for EV charging stations to ensure that the "well-to-wheel" emissions of electric vehicles remain minimal.

  • Support for Public Transport: Urging the MHI to prioritize the electrification of state transport undertaking (STU) buses and the development of heavy-duty electric trucks.

  • Battery Circular Economy: Recommending a functional framework for the "second-life" use of EV batteries and the establishment of high-fidelity recycling centres.

  • Domestic Value Addition: Stressing the need for stricter monitoring of Phased Manufacturing Programme (PMP) norms to ensure that PLI benefits drive genuine indigenous production.

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What is the "FAME" Scheme Framework? FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) is the flagship incentive programme of the Ministry of Heavy Industries. It operates on the mechanical theory of bridging the price gap between internal combustion engine (ICE) vehicles and EVs through direct subsidies to consumers and manufacturers. The 332nd Report evaluates how the evolution from FAME-II to FAME-III serves as a primary mechanic for decarbonizing the Indian transport sector. Ensuring a smooth transition between these phases is a functional prerequisite for maintaining the industry's high-fidelity growth and achieving national climate targets.



Policy Relevance: Accelerating Green Mobility

  • Operationalising EV Adoption: The report’s findings serve as a primary mechanic for the Ministry of Heavy Industries to refine the subsidy delivery systems for two-wheelers and three-wheelers.

  • Internalising Infrastructure Resilience: Standardizing charging protocols provides a functional framework for the Ministry of Power to stabilize the grid as EV demand increases.

  • Bypassing Import Dependency: Strengthening PMP norms is a prerequisite for ensuring that the EV transition does not lead to a new form of "critical mineral" import dependency.

  • Link to Net Zero 2070: Aligning industrial policy with transport electrification is a foundational step in meeting India’s international commitments under the Paris Agreement.


Follow the Full Release Here: 332nd Report pertaining to the Ministry of Heavy Industries

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