Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance

The **FAME-II Electric Mobility Scheme**, implemented by the Ministry of Heavy Industries (MHI) from April 2019 to March 2024 with a budgetary outlay of ₹11,500 crore, aimed to accelerate the adoption of electric vehicles (EVs) in India. Under this scheme, financial incentives were provided for e-2-wheelers, e-3-wheelers, e-4-wheelers, and electric buses, along with support for setting up public charging stations (EVPCS). However, a recent **Press Information Bureau (PIB) release (21 July 2026)** highlights **delays in implementation and underutilization** of the scheme. Despite the deployment of **5,197 electric buses** and the sale of **16.72 lakh EVs** by June 2026, challenges such as **slow adoption of charging infrastructure, bureaucratic hurdles, and limited consumer awareness** have constrained its effectiveness. The government’s broader EV push, including GST reduction to 5% and state-level tax exemptions, has seen EV adoption rise from **0.08% in FY 2015-16 to 8.26% in FY 2025-26**, but the gap between policy intent and ground reality persists.

For **Banking, SSC, and RBI Grade B aspirants**, this issue is relevant as it reflects **governance challenges in public policy execution**, a key topic in **Polity & Governance**. The **FAME-II scheme’s underperformance** underscores the need for **better inter-ministerial coordination, infrastructure development, and financial incentives**—concepts often tested in **RBI Grade B’s Economic & Social Issues (ESI) section** and **SSC CGL’s General Studies papers**. Additionally, the **budgetary allocations (₹11,500 crore) and their utilization** highlight **fiscal policy and public expenditure**, which are crucial for **Bank PO exams** focusing on economic awareness. The scheme’s **impact on the auto industry, employment generation, and environmental sustainability** also ties into **sustainable development goals**, a recurring theme in competitive exams. Understanding such **policy gaps and their economic implications** can help aspirants tackle **descriptive questions on governance and current affairs** effectively.

Source: PIB (Press Information Bureau)

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