Promoting Electric Vehicle (EV) ecosystem

The Ministry of Heavy Industries (MHI) has introduced several schemes to boost the electric vehicle (EV) ecosystem across India, including rural and semi-urban regions. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India Phase-II (FAME-II) scheme, implemented from April 1, 2019, to March 31, 2024, with a budget of Rs. 11,500 crore (US$ 1.31 billion) provided demand incentives for electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), and four-wheelers (e-4Ws) through upfront price reductions offered by Original Equipment Manufacturers (OEMs). Building on this, the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, notified on September 29, 2024, with an outlay of Rs. 10,900 crore (US$ 1.24 billion) supports demand incentives for e-2Ws, e-3Ws, e-trucks, and e-ambulances. The earlier Electric Mobility Promotion Scheme (EMPS) 2024 scheme was merged into PM E-DRIVE, with a similar incentive model and a strong emphasis on domestic sourcing under the Phased Manufacturing Programme (PMP), benefitting startups and Micro, Small and Medium Enterprises (MSMEs) across states, including Tripura.
In parallel, the Ministry of Housing and Urban Affairs (MoHUA) launched the PM-eBus Sewa Scheme on August 16, 2023, to enhance urban bus operations by deploying 10,000 electric buses under a Public-Private Partnership (PPP) model with Rs. 20,000 crore (US$ 2.28 billion) in Central Assistance. Eligible cities include those with a population between three to 40 lakh and smaller state or union territory capitals. The scheme provides per-kilometre (km) assistance over 10 years and covers 100% of behind-the-meter power infrastructure. As of July 31, 2025, 7,293 e-buses have been sanctioned across 14 states and four union territories. Additionally, Rs. 1,062 crore (US$ 120 million) has been sanctioned for 85 civil depot projects and 88 power infrastructure projects, of which Rs. 475 crore (US$ 54 million) has been disbursed to nine states/union territories. This multi-pronged approach aims to ensure the accessibility, affordability, and localisation of EVs across India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.