Executive Summary:
The Indian government is addressing the challenge of reducing carbon emissions through Electric Vehicle (EV) adoption, while acknowledging the current reliance on coal-based power generation. To ensure that EV adoption effectively reduces carbon emissions, the government is increasing the share of renewable energy (RE) in electricity generation and aligning the growth of the EV market with the expansion of RE sources. Key initiatives include bidding trajectories for RE power procurement, financial incentives, and infrastructure development.
Key Points / Main Content:
Renewable Energy Expansion Measures:
* Bidding Trajectory: MNRE has issued bidding trajectories for 50 GW/annum of RE power procurement bids by REIAs from FY 2023-24 to FY 2027-28.
* Foreign Investment: FDI is permitted up to 100% under the automatic route.
* Transmission Charge Waivers: ISTS charges are waived for interstate sale of solar and wind power for projects commissioned by specific deadlines.
* Renewable Consumption Obligation (RCO): RPO followed by RCO trajectory notified until 2029-30 with penalties for non-compliance.
* Standard Bidding Guidelines: Issued for tariff-based competitive bidding for power procurement from grid-connected RE projects.
* Government Schemes: Various schemes launched to boost RE consumption (PMKUSUM, PM Surya Ghar Muft Bijli Yojana etc.).
* Solar Parks: Scheme implemented for setting up Solar Parks and Ultra Mega Solar Power projects.
* Green Energy Corridor Scheme: Funds laying of new transmission lines and creating new substation capacity.
* Offshore Wind Energy: Strategy issued for establishing Offshore Wind Energy Projects and Viability Gap Funding (VGF) Scheme launched.
* Transmission Plan: Transmission plan prepared until 2032.
* Green Term Ahead Market (GTAM): Launched to facilitate sale of Renewable Energy Power through exchanges.
* Production Linked Incentive (PLI) Scheme: Implemented for High Efficiency Solar PV Modules to increase domestic production.
Electric Vehicle (EV) Market Alignment Measures:
* PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme: Incentivizes sale of e2W, e3W, eTrucks, eAmbulances, and e-buses, and supports charging infrastructure development.
* Production Linked Incentive (PLI) Schemes: PLI Auto approved for enhancing manufacturing capabilities for Advanced Automotive Technology (AAT) products, and PLI ACC approved for promoting manufacturing of Advanced Chemistry Cells (ACC).
* Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme Phase II: Implemented with Phased Manufacturing Programme (PMP) to increase domestic value addition.
* PM eBus Sewa-Payment Security Mechanism (PSM) Scheme: Supports deployment of over 38,000 electric buses, providing payment security to e-bus operators.
* Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI): Promotes the manufacturing of electric cars in India.
* Charging Infrastructure Guidelines: MoP issued guidelines for installation and operation of EV charging infrastructure, including battery swapping/charging stations.
* MoRTH Notifications: Exemptions from permit requirements and fees for battery-operated vehicles; advisory for sale and registration of two-wheeled EVs without batteries.
Impact Analysis:
Renewable Energy Implementing Agencies (REIAs):
* Impact: Must participate in bidding trajectories for RE power procurement.
* Action Required: Plan and execute RE power procurement bids as per the MNRE guidelines.
RE Developers:
* Impact: Benefit from access to land and transmission infrastructure through Solar Park schemes.
* Action Required: Utilize available schemes and infrastructure to install RE projects at a large scale.
Consumers:
* Impact: Subject to Renewable Consumption Obligation (RCO) and potential penalties for non-compliance.
* Action Required: Ensure compliance with RCO targets, including consumption from Decentralized Renewable Energy sources.
Automobile and Auto Component Manufacturers:
* Impact: Opportunity to enhance manufacturing capabilities and benefit from PLI schemes.
* Action Required: Participate in PLI schemes for AAT products and ACC manufacturing.
Electric Vehicle (EV) Manufacturers and Operators:
* Impact: Incentives for sales of EVs and support for charging infrastructure development.
* Action Required: Utilize PM E-DRIVE scheme and comply with charging infrastructure guidelines.
Public Transport Authorities (PTAs):
* Impact: Access to payment security mechanisms for deploying electric buses.
* Action Required: Participate in PM eBus Sewa-Payment Security Mechanism (PSM) Scheme.
States and UTs:
* Impact: Implement advisory regarding sale and registration of two-wheeled Electric Vehicles without batteries.
* Action Required: Follow the advisory for sale and registration of two-wheeled Electric Vehicles without batteries.
Key Entities Referenced
Electric Vehicles (EVs): Vehicles that use electric motors for propulsion, playing a key role in reducing carbon emissions in the transportation sector.
Ministry of Power (MoP): The Indian government ministry responsible for the development of electrical energy.
Ministry of New and Renewable Energy (MNRE): The Indian government ministry responsible for all matters relating to new and renewable energy.
Ministry of Heavy Industries (MHI): The Indian government ministry responsible for formulating policies and coordinating programmes for the development of heavy industries.
United Nations Framework Convention on Climate Change (UNFCCC): An international environmental treaty addressing climate change, to which India has submitted its Nationally Determined Contribution (NDC).
Renewable Purchase Obligation (RPO): A regulatory mechanism in India requiring obligated entities to purchase a certain percentage of their electricity from renewable energy sources.
Net-Zero emissions by 2070: India's long-term target to achieve a balance between the greenhouse gases produced and the greenhouse gases taken out of the atmosphere.
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PMKUSUM): An Indian government scheme aimed at promoting solar power usage among farmers.
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.4769
ANSWERED ON 21.08.2025
ADOPTION OF EV TO REDUCE CARBON EMISSIONS
4769. SHRI G KUMAR NAIK:
Will the Minister of POWER
be pleased to state:
(a) whether the Government is aware that approximately 76 percent of India’s
electricity generation in Financial Year 2023-24 comes from thermal power,
mainly coal, potentially offsetting the environmental benefits of Electric Vehicles
(EVs) due to high carbon emissions from electricity used for charging;
(b) if so, the measures taken/being taken by the Government to increase the
share of renewable energy in India’s electricity generation mix to ensure that EV
adoption effectively reduces carbon emissions; and
(c) the steps being implemented to align the growth of the EV market with the
expansion of renewable energy sources such as solar and wind to ensure that
advancements in green energy infrastructure support the transition to EVs and
reduce the transportation sector's carbon footprint?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a) : The Government is aware that coal-based power currently contributes the
largest share in the country’s electricity generation mix. India remains firmly
committed to combating climate change while simultaneously ensuring energy
security, affordability and accessibility as critical inalienable priorities to ensure
growth and development alongside the energy transition of the economy
towards achieving ‘Net-Zero’ emissions by 2070.
In its updated Nationally Determined Contribution (NDC) submitted to the
United Nations Framework Convention on Climate Change (UNFCCC) in August
2022, India has targeted to achieve about 50% of its cumulative electric power
installed capacity from non-fossil fuel-based energy resources by 2030. As on
31.07.2025, the share of non-fossil fuel based installed capacity has become
50.25% of total installed generation capacity.
……….2.- 2 -
With the steadily increasing share of RE in the Grid and promotion of clean
and efficient energy technologies, there has been significant decrease of about
7% (from 0.78 kg / KWh in 2014-15 to 0.72 Kg / KWh in 2023-24) in average carbon
emission intensity of grid electricity in India.
(b): Government has taken various steps/ measures to increase the share of
renewable energy in India's electricity generation mix. The details of which are
given at Annexure-I.
(c): Government has taken several steps to align the growth of the EV which
are given at Annexure-II.
**********ANNEXURE-I
ANNEXURE REFERRED IN REPLY TO PART (b) OF UNSTARRED QUESTION NO. 4769
ANSWERED IN THE LOK SABHA ON 21.08.2025
*************
In order to increase the share of renewable energy in India's electricity generation mix,
various steps/measures taken by government are as follows: -
(i) Ministry of New & Renewable Energy (MNRE) has issued Bidding Trajectory for
issuance of RE power procurement bids of 50 GW/annum by Renewable Energy
Implementing Agencies (REIAs) from FY 2023-24 to FY 2027-28.
(ii) Foreign Direct Investment (FDI) has been permitted up to 100 percent under the
automatic route.
(iii) Inter State Transmission System (ISTS) charges have been waived for inter-state
sale of solar and wind power for projects to be commissioned by 30th June 2025, for
Green Hydrogen Projects till December 2030 and for offshore wind projects till
December 2032.
(iv) To boost RE consumption, Renewable Purchase Obligation (RPO) followed by
Renewable Consumption Obligation (RCO) trajectory has been notified till 2029-30. The
RCO which is applicable to all designated consumers under the Energy Conservation
Act 2001 will attract penalties on non-compliance. RCO also includes specified
quantum of consumption from Decentralized Renewable Energy sources.
(v) Standard Bidding Guidelines for tariff based competitive bidding process for
procurement of Power from Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm &
Dispatchable RE (FDRE) projects have been issued.
(vi) Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan
(PM-KUSUM), PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency
Solar PV Modules, New Solar Power Scheme (for Tribal and PVTG Habitations/Villages)
under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti
Aabha Janjatiya Gram Utkarsh Abhiyan (DA JGUA), National Green Hydrogen Mission,
Viability Gap Funding (VGF) Scheme for Offshore Wind Energy Projects have been
launched.
(vii) Scheme for setting up of Solar Parks and Ultra Mega Solar Power projects is being
implemented to provide land and transmission to RE developers for installation of RE
projects at large scale.
(viii) Laying of new transmission lines and creating new sub-station capacity has been
funded under the Green Energy Corridor Scheme for evacuation of renewable power.
(ix) “Strategy for Establishments of Offshore Wind Energy Projects” has been issued.
(x) To augment transmission infrastructure needed for steep RE trajectory,
transmission plan has been prepared till 2032.
(xi) Green Term Ahead Market (GTAM) has been launched to facilitate sale of
Renewable Energy Power through exchanges.
(xii) To achieve the objective of increased domestic production of Solar PV Modules,
the Govt. of India is implementing the Production Linked Incentive (PLI) scheme for
High Efficiency Solar PV Modules. This will enable manufacturing capacity of Giga Watt
(GW) scale in High Efficiency Solar PV Module.
***************ANNEXURE-II
ANNEXURE REFERRED IN REPLY TO PART (c) OF UNSTARRED QUESTION NO.
4769 ANSWERED IN THE LOK SABHA ON 21.08.2025
*************
The steps taken by Government to align the growth of the EV market are as
below:
i. Ministry of Heavy Industries (MHI) has formulated following schemes to
promote the adoption of Electric Vehicles:
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-
DRIVE) Scheme: PM E-DRIVE Scheme has been notified on 29th September
2024 for promotion of electric mobility and to reduce dependence of fossil
fuels in the country. This scheme aims to incentivise sale of e-2W, e-3W,
e-Trucks, e-Ambulances, and e-buses. The scheme also supports
development of charging infrastructure and upgradation of vehicle testing
agencies.
Production Linked Incentive Scheme for Automobile and Auto Component
Industry (PLI-Auto): Government on 15th September, 2021 approved PLI-
Auto Scheme, for enhancing India's manufacturing capabilities for
Advanced Automotive Technology (AAT) products.
Production Linked Incentive (PLI) Scheme for manufacturing Advanced
Chemistry Cells (ACC): Government on 12th May, 2021 approved PLI-ACC
in order to promote manufacturing of ACC in the country. The scheme
envisages to establish a cumulative ACC battery manufacturing capacity
of 50 GWh.
Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME)
scheme Phase-II (FAME-II): FAME-II was implemented for a period of 5
years w.e.f. 01st April, 2019. Under FAME-II, Phased Manufacturing
Programme (PMP) was introduced with the objective of domestic
manufacturing of electric vehicles, its assemblies/ sub-assemblies and
parts/sub-parts thereby increasing the domestic value addition.
PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: This Scheme
notified on 28th October, 2024 and aims to support deployment of more
than 38,000 electric buses. The objective of scheme is to provide payment
security to e-bus operators in case of default by Public Transport
Authorities (PTAs).
Scheme for Promotion of Manufacturing of Electric Passenger Cars in India
(SPMEPCI): This scheme was notified on 15th March, 2024 to promote the
manufacturing of electric cars in India.ii. Ministry of Power (MoP) has issued Guidelines for Installation and
Operation of Electric Vehicle Charging Infrastructure-2024, dated 17th
September, 2024, outline standards and protocols to create connected &
interoperable EV charging infrastructure network which includes Battery
Swapping/Charging stations.
iii. The following steps have been taken by Ministry of Road Transport and
Highways (MoRTH) to promote adoption of Electric Vehicles (EVs) in the country:
Notification issued vide S.O. 5333(E) dated the 18th October, 2018, has
granted exemption from the requirements of permit to the battery-
operated transport vehicles.
Notification issued vide G.S.R. 525(E) dated the 2nd August, 2021 has
exempted Battery Operated Vehicles from the payment of fees for the
purpose of issue or renewal of registration certificate and assignment of
new registration mark.
Notification issued vide G.S.R. 302(E) dated the 18th April, 2023 to issue
All India Tourist Permit for battery operated vehicles without payment of
any permit fee.
Notification issued vide G.S.R. 167(E) dated the 1st March, 2019 for retro-
fitment of hybrid electric system or electric kit to vehicles and their
compliance standards shall be as per Automotive Industry Standards (AIS)
123.
An advisory dated 12th August, 2020 has been issued to all States and UTs
regarding sale and registration of two wheeled Electric Vehicles without
batteries.
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