The Government of India has outlined a series of measures to promote electric vehicles (EVs) in response to rising pollution levels in major cities. The initiatives were detailed in a written reply in the Rajya Sabha by Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma.
The Ministry of Heavy Industries has implemented multiple schemes to accelerate EV adoption and domestic manufacturing.
The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Phase-II scheme was operational from April 1, 2019, to March 31, 2024, with a budget of Rs. 11,500 crore. The scheme supported demand incentives for electric two-wheelers, three-wheelers, and four-wheelers, along with grants for electric buses and public charging stations. Approximately 16.71 lakh EVs were supported under the scheme. A total of 6,862 electric buses were sanctioned, of which 5,195 have been deployed as of February 7, 2026.
The Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry was notified in September 2021 with a budget outlay of Rs. 25,938 crore to enhance manufacturing of advanced automotive technology products, including EVs.
The PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage, notified in June 2021 with an outlay of Rs. 18,100 crore, aims to establish 50 GWh of domestic ACC battery manufacturing capacity.
The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, notified in September 2024 with an allocation of Rs. 10,900 crore, supports incentives for around 28.27 lakh EVs, including electric buses, trucks, ambulances, two- and three-wheelers. Rs. 4,391 crore has been allocated for deployment of 14,028 e-buses, with 13,800 allocated to major cities including Delhi, Bengaluru, Hyderabad, Mumbai, Ahmedabad, Pune and Surat.
The PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme, notified in October 2024 with an outlay of Rs. 3,435.33 crore, aims to support deployment of over 38,000 electric buses by providing payment security to operators.
The Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI), notified in March 2024, requires a minimum investment of Rs. 4,150 crore and phased domestic value addition targets.
To reduce EV costs, the government has introduced direct subsidies under PM E-DRIVE, reduced GST on EVs from 12% to 5% and on chargers from 18% to 5%, and encouraged states to waive road tax and registration fees. The PLI schemes also aim to reduce costs through domestic manufacturing and economies of scale.
As per inputs from BHEL, 29,151 public EV charging stations have been installed nationwide. An allocation of Rs. 2,000 crore under PM E-DRIVE has been made for further charging infrastructure deployment.
Battery management systems are covered under the PLI-Auto scheme, while traction battery packs are mandatory under the phased manufacturing programmes of FAME-II and PM E-DRIVE.
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