**Executive Summary**
This report details the Government of India's progress in implementing electric vehicle (EV) policies and infrastructure as of August 2026. It highlights significant financial outlays through schemes like FAME-II, PM E-DRIVE, and PLI initiatives aimed at boosting domestic manufacturing, battery production, and charging networks. Key outcomes include the support of millions of EVs and the installation of over 67,000 chargers to reduce environmental pollution.
**Key Points / Main Content**
**EV Adoption and Incentive Schemes**
* **FAME-II Scheme:** Implemented from 2019 to 2024 with a ₹11,500 crore budget, supporting 16.72 lakh EVs and 5,299 e-buses.
* **PM E-DRIVE Scheme:** Notified in September 2024 with a ₹10,900 crore outlay to incentivize 28.30 lakh EVs, including e-2Ws, e-3Ws, e-trucks, and e-ambulances.
* **PM e-Bus Sewa (PSM):** A ₹3,435.33 crore Payment Security Mechanism to support over 38,000 e-buses by protecting operators against defaults by transport authorities.
**Domestic Manufacturing and Battery Production**
* **PLI-Auto Scheme:** A ₹25,938 crore program to enhance manufacturing capabilities for Advanced Automotive Technology (AAT) and EVs.
* **PLI-ACC Battery Storage:** An ₹18,100 crore initiative to establish 50 GWh of domestic battery manufacturing; 40 GWh has already been awarded to four firms.
* **Phased Manufacturing Programme (PMP):** Mandates the domestic production of EV components and battery packs in a phased manner.
**Infrastructure Development**
* **Charging Stations:** As of August 7, 2026, a total of 67,657 EV chargers (including 1,139 swapping stations) have been installed.
* **Dedicated Funding:** ₹2,000 crore is allocated under PM E-DRIVE specifically for pan-India charging infrastructure.
**Regulatory and Fiscal Support**
* **Tax Reductions:** GST on electric vehicles and chargers has been reduced to 5%.
* **Exemptions:** Battery-operated vehicles are granted green license plates and are exempt from permit requirements.
* **State Incentives:** The central government has advised states to waive road taxes to lower the initial cost of EVs.
**Impact Analysis**
**EV Manufacturers and Auto Component Firms**
**Impact**
Beneficiaries of significant financial outlays and incentives for domestic production of AAT products and battery cells.
**Action Required**
Scale up domestic manufacturing facilities and comply with Phased Manufacturing Programme (PMP) mandates to qualify for PLI benefits.
**Public Transport Operators and Authorities**
**Impact**
Enhanced financial security through the Payment Security Mechanism (PSM), reducing the risk of operating large e-bus fleets.
**Action Required**
Coordinate with the Ministry of Heavy Industries and MoHUA to deploy the 14,028 e-buses allocated under current schemes.
**EV Consumers (Individual and Commercial)**
**Impact**
Reduced purchase costs due to demand incentives, lower GST rates, and potential road tax waivers.
**Action Required**
Utilize green license plates and follow state-specific guidelines for tax exemptions and permit-free operations.
**Charging Infrastructure Providers**
**Impact**
Access to government grants and a growing market demand driven by the surge in EV sales across segments.
**Action Required**
Expand charging and battery swapping networks, utilizing the ₹2,000 crore allocation under the PM E-DRIVE scheme.
Key Entities Referenced
PM E-DRIVE Scheme: A flagship initiative launched in 2024 with a ₹10,900 crore outlay to incentivize the adoption of electric vehicles, including e-trucks and e-ambulances, and upgrade testing agencies.
PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage: An initiative to establish a competitive domestic manufacturing ecosystem for advanced batteries with a total budgetary outlay of ₹18,100 crore.
PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: A scheme designed to provide payment security to e-bus operators to mitigate default risks by Public Transport Authorities and support the deployment of over 38,000 electric buses.
Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II: A major scheme implemented from 2019 to 2024 that provided demand incentives for various electric vehicle categories and supported the establishment of public charging infrastructure.
Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry: A financial incentive program with an outlay of ₹25,938 crore aimed at enhancing domestic manufacturing capabilities for Advanced Automotive Technology products and EVs.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 3760
ANSWERED ON 11.08.2026
ELECTRIC MOBILITY PROMOTION AND EV INFRASTRUCTURE
3760. DR. ALOK KUMAR SUMAN:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) the details of present status of implementation of the Electric Vehicle (EV) policy in the country;
(b) the details of steps taken to promote battery manufacturing in the country;
(c) the details of current status of EV charging infrastructure;
(d) the details of subsidy policy being implemented to promote adoption of electric vehicles; and
(e) the details of contribution of electric vehicles in reducing pollution?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a) to (e): 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:-
(i) 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 grant 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.
(ii) 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.
(iii) 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.-2-
(iv) 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.
(v) 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-eBus Sewa – Payment Security Mechanism
(PSM) Scheme covers 27,555 e-buses. Of these, 10,000 e-buses are under the PM-eBus Sewa Scheme of the
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 Scheme PLI Auto & Auto
(Sold) (Sold) Components
(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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