Read or download the official PDF of this gazette notification issued by the Ministry of Heavy Industries on 12th August 2026. Classified under Press Release.
Executive Summary
This report details the progress of the Ministry of Heavy Industries (MHI) in promoting electric vehicle (EV) adoption and charging infrastructure through various schemes like FAME-II, PLI, and PM E-DRIVE. It highlights budgetary allocations, such as the ₹10,900 crore for PM E-DRIVE and ₹11,500 crore for FAME-II, aimed at supporting millions of EVs and thousands of charging stations. Key milestones include the notification of the PM e-Bus Sewa-Payment Security Mechanism in October 2024 and specific EV sales targets through March 2026.
Key Points / Main Content
FAME India Scheme Phase-II
Implemented from April 2019 to March 2024 with a budget of ₹11,500 crore.
Supported the sale of 16.72 lakh EVs and the deployment of 5,299 e-buses.
Allocated ₹912.50 crore for charging infrastructure, resulting in 9,583 installed EV public charging stations (PCS).
Production Linked Incentive (PLI) Schemes
PLI-Auto: A ₹25,938 crore outlay to enhance domestic manufacturing of Advanced Automotive Technology (AAT) products.
PLI-ACC Battery Storage: A ₹18,100 crore scheme to establish 50 GWh of battery manufacturing capacity, with 40 GWh already awarded to four firms.
PM E-DRIVE and e-Bus Initiatives
PM E-DRIVE: Notified in September 2024 with a ₹10,900 crore outlay to support 28.30 lakh EVs (including e-trucks and e-ambulances) and upgrade testing agencies.
PM e-Bus Sewa-PSM: A ₹3,435.33 crore scheme notified in October 2024 providing payment security to operators for over 38,000 e-buses.
Charging Infrastructure: ₹2,000 crore allocated under PM E-DRIVE for pan-India PCS deployment; total installed chargers reached 67,657 by August 2026.
Regulatory and Fiscal Measures
GST on EVs and chargers reduced to 5%.
Exemption from permit requirements and the introduction of green license plates for battery-operated vehicles.
National advisory issued to states for the waiver of road tax on EVs.
Impact Analysis
EV Manufacturers and Auto Component IndustryImpact
They benefit from massive budgetary outlays under PLI schemes and the Phased Manufacturing Programme (PMP), which promotes domestic production of battery packs and EV components.
Action Required
Increase domestic manufacturing capabilities for AAT products and align production with PMP mandates.
Public Transport Authorities (PTAs) and e-Bus OperatorsImpact
Operators receive financial protection via the Payment Security Mechanism (PSM) against defaults by PTAs, while PTAs benefit from subsidized e-bus allocations.
Action Required
Coordinate the deployment of the 14,028 e-buses allocated under PM E-DRIVE and manage the transition to electric fleets.
Testing AgenciesImpact
Eligible for specific grants intended for the upgradation of facilities to handle new EV technologies.
Action Required
Undertake necessary infrastructure upgrades using allocated scheme funds.
General Consumers and Fleet OwnersImpact
Benefit from lower acquisition costs due to demand incentives, reduced GST, and road tax waivers, alongside improved access to a national charging network.
Action Required
Avail demand incentives for various vehicle categories, including e-2Ws, e-3Ws, e-4Ws, e-trucks, and e-ambulances.
Key Entities Referenced
FAME India Scheme Phase-II: A foundational scheme that provided ₹11,500 crore in demand incentives for electric vehicles and grants for establishing 9,583 public charging stations.
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme: A major initiative with an outlay of ₹10,900 crore aimed at incentivizing 28.30 lakh electric vehicles and upgrading testing agencies.
Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry: A ₹25,938 crore scheme designed to enhance India's manufacturing capabilities for Advanced Automotive Technology products, including electric vehicles.
Production Linked Incentive (PLI) Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage: An ₹18,100 crore initiative focused on establishing a domestic manufacturing ecosystem for advanced chemistry cell batteries used in EVs.
PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: A scheme providing payment security to e-bus operators to support the deployment of over 38,000 electric buses.
Ministry of Heavy Industries
FAME India Scheme Phase-II: Progress in
Electric Vehicle Adoption and Charging
Infrastructure
प्रव तथ: 12 AUG 2026 11:27AM by PIB Delhi
The details and progress of the schemes implemented by the Ministry of Heavy Industries (MHI) for the
development of electric vehicles in the country along with charging infrastructure are as under:-
Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme
Phase-II: The Government implemented this scheme for a period of five years from 01.04.2019 to
31.03.2024 with a total budgetary support of ₹11,500 crore. The scheme provided demand incentive for e-
2Ws, e-3Ws, e-4Ws and grants for e-buses and setting up of EV public charging stations (EV PCS).
FAME-II has supported the sale of approximately 16.72 lakh electric vehicles, including e-2Ws, e-3Ws,
and e-4Ws. In addition, 5,299 electric buses (e-buses) have been deployed under the Scheme as on
31.07.2026. Further, an amount of ₹912.50 crore was allocated under the Scheme for the establishment of
EVPCS across the country. 9,583 EV PCS have been installed under this scheme.
Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India
(PLI-Auto): The Government notified this scheme for Automobile and Auto Component Industry in
India, on 23.09.2021, for enhancing India's manufacturing capabilities for Advanced Automotive
Technology (AAT) products, including EVs, with a budgetary outlay of ₹25,938 crore.
Production Linked Incentive (PLI) Scheme for National Programme on Advanced Chemistry Cell
(ACC) Battery Storage : The Government on 09.06.2021 notified the PLI Scheme for manufacturing of
ACC in the country with a budgetary outlay of ₹18,100 crore. The scheme aims to establish a competitive
domestic manufacturing ecosystem for 50 GWh of ACC batteries, out of which, 40 GWh has been
awarded to four beneficiary firms. The 40 GWh capacity is end-use agnostic and can be utilized for any
application including electric vehicles.
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme: This
scheme with an outlay of ₹10,900 crore has been notified on 29.09.2024. This scheme supports
incentivization of approximately 28.30 lakh electric vehicles (EVs) including e-2W, e-3W, e-Trucks, e-
buses and e-Ambulances. Further, grant for upgradation of testing agencies is also available under this
scheme. An allocation of ₹4,391 crore has been made under the scheme for deployment of 14,028 e-buses
out of which 14,000 e-buses have been allocated. ₹2,000 crore has been allocated for deployment of EV
PCS on pan India basis. Phased Manufacturing Programme (PMP)Mandates the domestic manufacturing
of EV components, including battery packs, in a phased manner.
PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: This Scheme notified on 28.10.2024,
has an outlay of ₹3,435.33 crore and aims to support deployment of more than 38,000 electric buses. The
objective of this scheme is to provide payment security to e-bus operators in case of default by Public
Transport Authorities (PTAs). As on 10.07.2026, the PM-eBusSewa – Payment Security Mechanism
(PSM) Scheme covers 27,555 e-buses. Of these, 10,000 e-buses are under the PM-eBusSewa Scheme ofthe Ministry of Housing and Urban Affairs (MoHUA), 14,000 e-buses are under the PM E-DRIVE
Scheme of the Ministry of Heavy Industries (MHI), and 3,555 e-buses under various State
Government/State Transport Undertaking (STU) initiatives.
Further, following initiatives have also been taken up by the Government of India to
increase the use of electric vehicles in the country:–
i. GST on electric vehicles and chargers/ charging stations for electric vehicles has been reduced to
5%.
ii. Ministry of Road Transport & Highways (MoRTH) announced that battery-operated
vehicles will be given green license plates and be exempted from permit requirements.
iii. MoRTH issued advisory to states to waive road tax on EVs, which in turn will help
reduce the initial cost of EVs.
Number of EVs supported under MHI’s schemes as on 30.06.2026, are as under:
Scheme FAME-I FAME-II PM E-DRIVE PLI Auto & Auto
Scheme Components
(Sold)
(Sold) (Sold)
No. of EVs 2.80 lakh 16.72 lakh 26.59 lakh ~21.30 lakh
supported /sold
(up to 31.03.2026)
MHI has contributed towards reducing pollution by supporting the aforesaid number of EVs.
As of 07.08.2026, a total of 67,657 EV chargers are installed across various States and Union Territories,
which includes 1,139 battery swapping station chargers.
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