Promoting EV ecosystem

The Ministry of Heavy Industries has launched several initiatives to strengthen India's Electric Vehicle (EV) ecosystem, aligning with the Atmanirbhar Bharat vision and Viksit Bharat 2047. The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, notified on September 29, 2024, aims to promote electric mobility, and reduce reliance on fossil fuels. With an outlay of US$ 1.28 billion (Rs. 10,900 crore) over two years, i.e., from April 1, 2024, to March 31, 2026), the scheme incentivises the sale of electric two-wheelers (e-2W), three-wheelers (e-3W), trucks, ambulances, and buses, alongside supporting charging infrastructure and vehicle testing upgrades. Additionally, the Electric Mobility Promotion Scheme (EMPS) 2024, active for six months from April 1, 2024, to September 30, 2024, is now subsumed under PM E-DRIVE.  

Other schemes include the Production Linked Incentive (PLI) for the Automobile and Auto Component Industry, which was approved in September 2021 with a US$ 3.06 billion (Rs. 25,938 crore) outlay, and the PLI Scheme for Advanced Chemistry Cells (ACC), approved in May 2021 with a US$ 2.13 billion (Rs. 18,100 crore) outlay, aiming to establish 50 GWh of ACC manufacturing capacity. The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-II) scheme, running from Apr 1, 2019, with a US$ 1.36 billion (Rs. 11,500 crore) budget, encourages domestic EV manufacturing. The PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme, launched on October 28, 2024, with an allocation of US$ 405 million (Rs. 3,435.33 crore), will support the deployment of over 38,000 electric buses. Additionally, the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI), notified on March 15, 2024, aims to boost electric car manufacturing with a minimum investment of US$ 489.2 million (Rs. 4,150 crore) and a Domestic Value Addition (DVA) target of 50% by the fifth year. 

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