The Ministry of Heavy Industries in India has played a pivotal role in driving the adoption of electric vehicles (EVs) through a series of strategic initiatives. Under the second phase of the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME India) Scheme, the ministry has granted a substantial subsidy totalling Rs. 5294.00 crores for the sale of 11,79,669 electric vehicles. These include 10,42,110 two-wheelers, 1,22,690 three-wheelers, and 14,869 four-wheelers.
Moreover, the ministry has sanctioned 6862 electric buses for intra-city operations, with 3487 e-buses already supplied to State Transport Undertakings (STUs) as of November 29, 2023. Recognizing the need for an extensive charging infrastructure, Rs. 800 crore has been allocated as capital subsidy to three Oil Marketing Companies for the establishment of 7,432 public charging stations.
To boost domestic manufacturing of advanced automotive technology, including electric vehicles and advanced chemistry cells, the ministry has introduced two Production Linked Incentive (PLI) schemes. The PLI Scheme for the Automobile and Auto Component Industry, with a budget of Rs. 25,938 crore, provides financial incentives of up to 18% for eligible sales of electric vehicles and components. Additionally, the ‘National Programme on Advanced Chemistry Cells (ACC) Battery Storage’ has been approved with a budget of Rs. 18,100 crore to incentivize Giga-scale ACC manufacturing facilities.
The overarching FAME India Phase II Scheme, spanning five years from April 1, 2019, with a budgetary support of Rs. 10,000 crore, focuses on electrifying public and shared transportation. The scheme aims to incentivize 7090 e-buses, 5 lakh e-3 wheelers, 55,000 e-4 wheeler passenger cars, and 10 lakh e-2 wheelers, along with supporting the creation of essential charging infrastructure.
The Ministry’s multifaceted approach underscores its commitment to driving sustainable and widespread EV adoption across the country.
