The Ministry of Heavy Industries (MHI) in India has launched several initiatives to bolster the adoption of electric vehicles (EVs) and foster the country’s transition to sustainable transportation. Among the key programs is the Electric Mobility Promotion Scheme 2024 (EMPS), which allocates ₹778 crore over six months, starting April 1, 2024, to provide incentives for buyers of electric two-wheelers (e-2W) and electric three-wheelers (e-3W).
Additionally, the Production Linked Incentive Scheme for the Automobile and Auto Component Industry (PLI-AAT), with a substantial budget of ₹25,938 crore, aims to incentivize the production of various EV categories, including e-2W, e-3W, e-4W, e-buses, and e-trucks. The Production Linked Incentive Scheme for Advanced Chemistry Cell (PLI-ACC), with an outlay of ₹18,100 crore, is designed to boost the manufacturing of advanced battery cells in India.
Furthermore, a dedicated scheme to promote the manufacturing of electric passenger cars seeks to attract global EV manufacturers to invest in India, positioning the country as a prime destination for EV production.
Since its inception in 2015, the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme has played a crucial role in promoting EV adoption. The first phase, which concluded on March 31, 2019, saw 2.8 lakh EVs supported with demand incentives totaling ₹359 crores. Phase I also deployed 425 electric and hybrid buses across various cities and established 520 charging stations with government support.
Building on the success of Phase I, FAME India Scheme Phase II commenced on April 1, 2019, with a budget of ₹11,500 crore over five years. This phase focuses on electrifying public and shared transportation, aiming to support 7,262 e-buses, 1,55,536 e-3Ws, 30,461 e-4W passenger cars, and 15,50,225 e-2Ws, alongside developing charging infrastructure.
As of July 31, 2024, claims for 16,71,606 electric vehicles, amounting to ₹6,825 crore, have been submitted for subsidy reimbursement under Phase II. The breakdown includes 14,69,343 e-2Ws, 1,78,952 e-3Ws, and 23,311 e-4Ws. Additionally, 4,853 out of 6,862 sanctioned e-buses have been supplied to various cities for intra-city operations.
To support the development of EV charging infrastructure, MHI has sanctioned ₹800 crore as capital subsidy to three Oil Marketing Companies (OMCs) for establishing 7,432 public charging stations. An additional ₹73.50 crore was sanctioned in March 2024 to upgrade 980 public fast-charging stations, with ₹51.45 crore already disbursed to OMCs.
This comprehensive effort by the Ministry of Heavy Industries underscores India’s commitment to accelerating the adoption of electric vehicles and fostering a sustainable and environmentally friendly transportation ecosystem. The information was shared by Minister of State for Heavy Industries and Steel, Shri Bhupathi Raju Srinivasa Varma, in a written reply in the Rajya Sabha.
