Executive Summary:
The Ministry of Heavy Industries outlines initiatives to bolster India's Electric Vehicle (EV) sector, including infrastructure development and R&D promotion. Several schemes with substantial budgetary support are detailed, spanning from 2019 to 2026, alongside initiatives from other ministries. The document emphasizes financial incentives, domestic manufacturing, and technology advancement in the EV domain.
Key Points / Main Content:
EV Infrastructure Improvement Schemes:
* FAME India Scheme Phase II: Implemented from April 1, 2019, to March 31, 2024, with Rs. 11,500 crore to provide demand incentives for various EV types and establish public charging stations.
* PM EDRIVE Scheme: From April 1, 2024, to March 31, 2026, with Rs. 10,900 crore to support EVs, EV PCS, and testing agency upgrades.
* PLI Scheme for Advanced Chemistry Cell (ACC): Approved on May 12, 2021, with Rs. 18,100 crore to establish domestic manufacturing for 50 GWh of ACC batteries.
* PLI Scheme for Automobile and Auto Component Industry (PLI-Auto): Approved on September 23, 2021, with Rs. 25,938 crore to incentivize domestic manufacturing of Advanced Automotive Technology products.
* Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI): Notified on March 15, 2024, requiring minimum investment and Domestic Value Addition (DVA) targets.
* PM eBus Sewa Payment Security Mechanism (PSM) Scheme: Notified on October 28, 2024, with Rs. 3,435.33 crore to support deployment of over 38,000 electric buses.
Other Ministries' Initiatives:
* Ministry of Power: Issued EV Charging Infrastructure guidelines on September 17, 2024, for a connected and interoperable charging network.
* Ministry of Finance: Reduced GST on EVs from 12% to 5%.
* Ministry of Road Transport Highways (MoRTH): Battery-operated vehicles to receive green plates and permit exemptions; states advised to waive road tax on EVs.
* Ministry of Housing and Urban Affairs: Amended building bye-laws to mandate charging stations in buildings.
Research and Development (R&D) Promotion:
* Engineering R&D and product design development costs are eligible under PLI-Auto, PLI ACC, and SPMEPCI schemes.
* Up to 80% of R&D project costs, including EV projects, are supported under the Capital Goods scheme of MHI.
* Centres of excellence established for niche technologies, including EV-related technologies.
* Rs. 780 crore allocated under PM EDRIVE for upgrading testing agencies for EV testing.
* ARCI, Hyderabad, developed advanced battery technologies, including Lithium, Sodium-ion, Lithium-Sulphur batteries, and thermal management systems.
Impact Analysis:
Automobile and Auto Component Manufacturers:
* Impact: Access to financial incentives to boost domestic manufacturing of advanced automotive technology products, attract investments, and enhance R&D efforts.
* Action Required: Invest in advanced automotive technology, meet Domestic Value Addition (DVA) targets, and leverage available schemes.
Electric Vehicle Manufacturers:
* Impact: Increased demand due to reduced GST and road tax, support for manufacturing through PLI schemes, and incentives for setting up charging infrastructure.
* Action Required: Increase production capacity, focus on R&D, and take advantage of government incentives to lower costs.
Public Transport Authorities (PTAs) and E-bus Operators:
* Impact: Payment security for e-bus operations through the PM eBus Sewa PSM scheme, support for deploying electric buses, and access to financial assistance.
* Action Required: Implement electric bus services, adhere to payment security mechanisms, and coordinate with relevant ministries.
Consumers:
* Impact: Lower initial cost of EVs due to reduced GST and potential road tax waivers, increased availability of charging infrastructure, and environmentally friendly transportation options.
* Action Required: Consider purchasing EVs to reduce emissions and take advantage of government incentives.
R&D Institutions (IITs, IISc, ARCI, etc.):
* Impact: Funding for R&D projects, opportunities to develop and test advanced battery technologies, and collaboration with industry partners.
* Action Required: Conduct research on advanced battery technologies, collaborate with industry partners, and develop scalable methods for energy absorption, storage, and conversion.
Key Entities Referenced
Ministry of Heavy Industries: A ministry within the Government of India responsible for policies related to heavy industries, including the Electric Vehicle sector.
Faster Adoption and Manufacturing of Hybrid Electric Vehicles in India FAME India Scheme PhaseII: A Government scheme implemented from 1st April, 2019 to 31st March 2024 with a total budgetary support of Rs.11,500 crore to promote Electric Vehicles and EV infrastructure.
PM Electric Drive Revolution in Innovative Vehicle Enhancement PM EDRIVE Scheme: A Government scheme with an outlay of Rs. 10,900 crore being implemented from 1st April 2024 to 31st March 2026 to support electric vehicles and related infrastructure.
PLI Scheme for Advanced Chemistry Cell ACC: A Production Linked Incentive scheme approved on 12th May, 2021 with a budgetary outlay of Rs. 18,100 crore for manufacturing of Advanced Chemistry Cell batteries in India.
Production Linked Incentive PLI Scheme for Automobile and Auto Component Industry in India PLIAuto: A Production Linked Incentive scheme approved on 23rd September, 2021 with a budgetary outlay of 25,938 crore to boost domestic manufacturing of Advanced Automotive Technology products.
Scheme for Promotion of Manufacturing of Electric Passenger Cars in India SPMEPCI: A scheme notified on 15th March, 2024 to promote the manufacturing of electric cars in India.
PM eBus SewaPayment Security Mechanism PSM Scheme: A Scheme notified on 28.10.2024, with an outlay of Rs. 3,435.33 crore to support deployment of more than 38,000 electric buses.
Hyderabad, Telangana: A city in the state of Telangana, India, location of the International Advanced Research Centre for Powder Metallurgy and New Materials ARCI, an autonomous RD centre under Department of Science and Technology DST.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 2637
ANSWERED ON 05.08.2025
INITIATIVES TO IMPROVE EV SECTOR
2637. DR. NISHIKANT DUBEY:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) the details of initiatives taken to improve Electric Vehicle (EV) infrastructure in the country;
(b) whether the Government is adopting new technologies and spending on Research and
Development (R&D) related to EV; and
(c) if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a) The Government has launched following schemes to improve Electric Vehicle (EV)
infrastructure in the country: -
1. 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 1st April, 2019 to 31st March 2024 with a total budgetary support of Rs.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).
2. PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)
Scheme: This scheme with an outlay of Rs. 10,900 crore is being implemented from 1st April
2024 to 31st March 2026. PM E-DRIVE aims to support electric vehicles including e-2W, e-
3W, e-Trucks, e-buses, e-Ambulances, EV PCS and upgradation of testing agencies.
3. PLI Scheme for Advanced Chemistry Cell (ACC): The Government on 12th May,
2021 approved PLI Scheme for manufacturing of ACC in the country with a budgetary outlay
of Rs. 18,100 crore. The scheme aims to establish a competitive domestic manufacturing
ecosystem for 50 GWh of ACC batteries.
4. Production Linked Incentive (PLI) Scheme for Automobile and Auto Component
Industry in India (PLI-Auto): The Government approved this scheme on 23rd September, 2021
with a budgetary outlay of ₹25,938 crore. The scheme provides financial incentives to boost
domestic manufacturing of Advanced Automotive Technology (AAT) products with minimum
50% Domestic Value Addition (DVA) and attract investments in the automotive manufacturing
value chain.
5. Scheme for Promotion of Manufacturing of Electric Passenger Cars in India
(SPMEPCI): The scheme was notified on 15th March, 2024 to promote the manufacturing of
electric cars in India. This requires applicants to invest a minimum of Rs. 4150 crore and to
achieve a minimum DVA of 25% at the end of the third year and DVA of 50% at the end of the
fifth year.-2-
6. PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: This Scheme notified
on 28.10.2024, has an outlay of Rs. 3,435.33 crore 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).
Besides above following initiatives have been taken by other Ministries :
i. Ministry of Power has issued guidelines and standards for EV Charging Infrastructure
titled, "Guidelines for Installation and Operation of Electric Vehicle Charging
Infrastructure-2024" on 17th September, 2024. These revised guidelines outline standards
and protocols to create a connected and interoperable EV charging infrastructure network
in the country. These guidelines also facilitate electricity connections for EV charging
stations.
ii. Ministry of Finance has reduced GST on EVs from 12% to 5%.
iii. Ministry of Road Transport & Highways (MoRTH) announced that the battery
operated vehicles will be given green plates and be exempted from permit requirements.
MoRTH issued a notification advising states to waive road tax on EVs, which in turn will
help reduce the initial cost of the EVs.
iv. Ministry of Housing and Urban Affairs has amended the Model Building Bye-
Laws, mandating the inclusion of charging stations in private and commercial buildings.
(b) & (c): Yes, the Government is promoting new technologies and spending on Research
and Development (R&D) related to EVs through the following :
1. The expenditure incurred on Engineering R&D and product design & development is
allowed to be considered as part of Eligible Investment under PLI-Auto, PLI ACC and
SPMEPCI schemes.
2. Under the Capital Goods scheme of MHI, up to 80% of the cost of R&D projects
including those on EVs is supported. These projects are housed in leading academic institutes
like IITs, IISc., etc. The balance 20% is borne by the industry partners.
3. Centres of excellence have been set up for development of niche technologies not
available in India, including technologies related to EVs.
4. An amount of Rs.780 crore is allocated under PM E-DRIVE for upgradation of testing
agencies especially for EV related testing. This will also facilitate EV related R&D efforts of the
automotive industry.
5. Further, the International Advanced Research Centre for Powder Metallurgy and New
Materials (ARCI), Hyderabad, an autonomous R&D centre under Department of Science and
Technology (DST), has developed several advanced battery technologies. These are as under : -
I. Development of materials for Lithium and Sodium ion and Lithium Sulphur (LiS)
batteries; Fabrication and validation of cylindrical and pouch cells.
i. Cobalt free High Voltage Cathode Materials (LiMnFePO & LiNi0.5Mn1.5O4 for High
4
Energy Li-ion Battery Application
ii. High Performance NVP, layered oxides as cathodes and Hard Carbon from Bio-
waste as anode for Na-ion Battery Applications
iii. Metal oxide modified Carbon Sulphur composite cathodes for high performance and
stable Li-S batteries.-3-
II. Development of cost-effective and high-performance composite PCMS for battery
thermal management systems in EV Applications.
III. Development of Aluminium-ion Battery as alternative to LIBs in EV and ESS
applications
IV. Development of Hybrid-models for accelerated service life predication of LIBs and other
battery systems.
V. Development of Eco-friendly process (wet & dry) for battery electrode fabrications
VI. Developing a scalable method for tuning the internal pore structure and porosity of a metal
or alloy for thermal energy absorption, storage, and conversion applications.
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