SRINAGAR: The Union Government has stepped up its push for electric mobility across the country through a series of incentive-linked schemes, with more than Rs 6,500 crore disbursed as subsidies under the FAME-II programme alone and fresh allocations running into thousands of crores for manufacturing, batteries, buses and charging infrastructure.
The Ministry of Heavy Industries informed the Lok Sabha on Tuesday that it is actively promoting electric vehicles (EVs) and related charging infrastructure nationwide through multiple policy interventions aimed at boosting domestic manufacturing, reducing fossil fuel dependence and encouraging consumer adoption.
Responding to an Unstarred Question, Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma said the government has implemented a combination of demand incentives, production-linked incentives and infrastructure support to expand the EV ecosystem.
The second phase of the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME India) scheme was implemented from April 2019 to March 2024 with a total outlay of Rs 11,500 crore. Under the scheme, financial incentives were provided directly to buyers of electric two-wheelers, three-wheelers and four-wheelers to lower upfront purchase costs.
According to official data, incentives have been extended to 16,16,215 electric vehicles under FAME-II, including 14,28,882 electric two-wheelers, 1,64,718 electric three-wheelers and 22,615 electric four-wheelers. A total subsidy of Rs 6,558.19 crore has been disbursed for these vehicles.
In addition, the scheme supported 6,862 electric buses for state transport undertakings with an outlay of Rs 3,135.5 crore and sanctioned 9,159 public EV charging stations with an allocation of Rs 912.50 crore.
To further strengthen the domestic manufacturing base, the government has introduced the Production Linked Incentive (PLI) Scheme for the automobile and auto component industry with a budget of Rs 25,938 crore. The scheme seeks to promote advanced automotive technologies, including EVs, by offering incentives linked to domestic value addition and investment.
A separate PLI scheme for Advanced Chemistry Cell (ACC) battery storage, approved with an outlay of Rs 18,100 crore, aims to establish 50 GWh of domestic battery manufacturing capacity to reduce import dependence and build a competitive supply chain.
The government has also launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme with an outlay of Rs 10,900 crore for the period from April 2024 to March 2028. The scheme provides demand incentives for electric two-wheelers, three-wheelers, trucks and ambulances, along with support for charging infrastructure and upgradation of testing facilities.
Between April 2024 and January 27, 2026, incentives under PM E-DRIVE have been extended to 16,56,269 vehicles, with subsidy disbursal of Rs 1,851.97 crore. These include 14,31,067 electric two-wheelers and over 2.25 lakh electric three-wheelers.
The scheme also earmarks Rs 4,391 crore for the deployment of 14,028 electric buses, Rs 2,000 crore for public charging stations, Rs 500 crore for electric trucks, Rs 500 crore for electric ambulances and Rs 780 crore for upgrading testing infrastructure.
Further, the PM e-Bus Sewa-Payment Security Mechanism scheme, notified in October 2024 with an outlay of Rs 3,435.33 crore, is designed to facilitate the deployment of more than 38,000 electric buses by providing payment security to operators in case of default by public transport authorities.
To promote investment in electric passenger car manufacturing, the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India was notified in March 2024.
On charging infrastructure, the Ministry of Power has issued revised guidelines in September 2024 to strengthen installation and operation of public charging stations, including along national highways, and to promote interoperable and battery-swapping networks. Setting up charging stations has been made an unlicensed activity, enabling private participation.
The Minister clarified that none of the schemes have state-wise allocations, and assistance is provided on a pan-India basis, including states such as Tripura.
The government said the combined approach of demand incentives, domestic manufacturing support and charging infrastructure development is intended to accelerate EV adoption and create a self-reliant electric mobility ecosystem across the country.
