Government Initiatives to Enhance Electric Vehicle Sector

The Indian government has unveiled a series of initiatives aimed at enhancing the electric vehicle (EV) infrastructure across the country. These schemes, which include substantial financial allocations, are designed to promote the adoption and manufacturing of electric vehicles, as well as to improve the associated charging infrastructure. With a focus on sustainability and innovation, these measures are expected to significantly boost the EV sector in India over the coming years.

FAME India Scheme Phase-II

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India) Scheme Phase-II is a cornerstone of the government’s strategy, running from April 1, 2019, to March 31, 2024. This initiative has a budgetary support of โ‚น11,500 crore, aimed at incentivizing the demand for electric two-wheelers, three-wheelers, four-wheelers, and electric buses. Additionally, it provides grants for establishing public charging stations for electric vehicles. This scheme is pivotal in encouraging consumers to transition to electric mobility by making it more financially attractive.

PM Electric Drive Revolution (PM E-DRIVE) Scheme

Launching in April 2024 and set to run until March 2026, the PM Electric Drive Revolution (PM E-DRIVE) Scheme has an outlay of โ‚น10,900 crore. This initiative aims to support a wide range of electric vehicles, including two-wheelers, three-wheelers, trucks, buses, and ambulances. It also focuses on enhancing the capabilities of testing agencies for electric vehicles. By providing substantial financial backing, the government hopes to stimulate innovation and investment in the electric vehicle sector, thereby fostering a more robust EV ecosystem.

Production Linked Incentive (PLI) Schemes

The government has introduced several Production Linked Incentive (PLI) schemes to bolster domestic manufacturing in the electric vehicle and automotive sectors. The PLI Scheme for Advanced Chemistry Cell (ACC), approved on May 12, 2021, has a budget of โ‚น18,100 crore and aims to establish a competitive manufacturing ecosystem for 50 GWh of ACC batteries. Additionally, the PLI Scheme for the Automobile and Auto Component Industry, approved on September 23, 2021, allocates โ‚น25,938 crore to incentivize the production of Advanced Automotive Technology products with a minimum of 50% domestic value addition. These initiatives are crucial for reducing dependency on imports and enhancing local manufacturing capabilities.

Supporting Initiatives and Guidelines

In addition to the major schemes, various ministries have implemented supportive measures to enhance the EV landscape. The Ministry of Power has issued guidelines for EV charging infrastructure, aiming to create a connected network across the country. The Ministry of Finance has reduced the Goods and Services Tax (GST) on electric vehicles from 12% to 5%, making them more affordable for consumers. Furthermore, the Ministry of Road Transport and Highways has introduced green plates for battery-operated vehicles and recommended waiving road tax, which will further lower the cost of ownership. The Ministry of Housing and Urban Affairs has also mandated the inclusion of EV charging stations in new buildings, ensuring that infrastructure keeps pace with the growing demand for electric vehicles. These comprehensive measures reflect the government’s commitment to fostering a sustainable and innovative electric vehicle ecosystem in India.


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Shalini Singh

Shalini Singh is a journalist specializing in Indian politics and national affairs. With a keen eye for political developments, policy reforms, and democratic discourse, she brings clarity and insight to every piece she writes. Shalini is also associated with ANB National, where she reports on key political narratives and legislative… More »

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