The Indian government is actively promoting the adoption of Electric Vehicles (EVs) and the development of EV charging infrastructure across the country, through a series of targeted schemes and policy initiatives. These programmes focus on boosting demand, strengthening domestic manufacturing, supporting advanced battery production, and expanding public charging networks nationwide, stated Bhupathiraju Srinivasa Varma in his written reply in the Lok Sabha.

FAME India scheme drives early EV adoption

The Faster Adoption and Manufacturing of Electric (& Hybrid) Vehicles in India (FAME India) Scheme has been one of the key pillars of India’s EV push. The second phase of the scheme (FAME-II) was implemented for five years from April 1, 2019, to March 31, 2024, with a total outlay of ₹11,500 crore. The programme supported EV adoption through demand incentives and infrastructure development.

PLI-Auto scheme supports advanced automotive manufacturing

To strengthen domestic manufacturing capabilities, the Government approved the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry (PLI-Auto) on September 23, 2021. With a budgetary outlay of ₹25,938 crore, the scheme is designed to enhance India’s manufacturing capacity for Advanced Automotive Technology (AAT) products.

The scheme offers financial incentives to promote domestic production of AAT products, including EVs, with a minimum of 50% Domestic Value Addition (DVA). It also seeks to attract investments across the automotive manufacturing value chain.

PLI for ACC battery storage targets 50 GWh capacity

To build a competitive domestic battery ecosystem, the Government approved the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage on May 12, 2021, with an outlay of ₹18,100 crore. The scheme aims to establish a robust manufacturing base in India for 50 GWh of ACC batteries, a critical component for EVs and energy storage systems.

PM E-DRIVE scheme expands EV incentives and infrastructure

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme is being implemented from April 1, 2024, to March 31, 2028, with a total outlay of ₹10,900 crore. The scheme covers a wide range of electric vehicles, including electric two-wheelers (e-2W), three-wheelers (e-3W), e-trucks, e-buses, and e-ambulances.

In addition to vehicle support, the scheme also provides for the development of public EV charging stations and the upgradation of testing agencies. Demand incentives under PM E-DRIVE are provided directly to buyers and end users in the form of an upfront price reduction at the time of purchase for eligible EV categories, including e-2Ws, e-3Ws (e-rickshaws and e-carts), e-3Ws (L5), e-trucks, and e-ambulances.

PM e-Bus Sewa PSM scheme ensures payment security

The PM e-Bus Sewa — Payment Security Mechanism (PSM) Scheme, notified on October 28, 2024, with an outlay of ₹3,435.33 crore, aims at supporting the deployment of more than 38,000 electric buses.

The scheme’s primary objective is to provide payment security to e-bus operators in cases where Public Transport Authorities (PTAs) default on payments, thereby reducing financial risk and encouraging faster adoption of electric buses in public transport fleets.

Scheme to promote manufacturing of electric passenger cars

The Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI) was notified on March 15, 2024. It focuses specifically on promoting domestic manufacturing of electric passenger cars and strengthening India’s position in the EV car segment.

Charging infrastructure opened to private participation

On the infrastructure side, the Government has clarified that setting up EV charging stations is an unlicensed activity, allowing private entrepreneurs to participate freely in the sector.

To further strengthen the ecosystem, the Ministry of Power issued the “Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure – 2024” on September 17, 2024. These guidelines aim to expand and standardise EV charging infrastructure, including along National Highways, and promote a connected and interoperable charging network. They also incorporate provisions for battery-swapping stations.

Dedicated funds for public charging stations

Financial support has also been earmarked for expanding public charging networks across India. Allocations of ₹912.50 crore under the FAME-II Scheme and ₹2,000 crore under the PM E-DRIVE Scheme have been made for setting up EV public charging stations on a pan-India basis.

Incentives across schemes to boost EV uptake

Through major programmes — including FAME-II, PLI Auto, PLI ACC, PM E-DRIVE, and SPMEPCI — the Government is providing subsidies and incentives to accelerate EV adoption, expand manufacturing capacity, and build a nationwide charging infrastructure network. Together, these measures form a comprehensive framework to advance electric mobility across India.