**Executive Summary**
This document is a response to questions raised in Lok Sabha regarding the review of the existing Electric Vehicle (EV) policy. The Minister of Heavy Industries clarifies that there is no current proposal to reconsider or revise the EV policy. However, the document details several schemes implemented by the Ministry to encourage Electric Vehicles in India.
**Key Points / Main Content**
* **Review of EV Policy:**
* No proposal to reconsider or revise the existing Electric Vehicle (EV) policy is under consideration.
* **Implemented Schemes to Encourage Electric Vehicles:**
* **Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-Auto):**
* Notified on September 23, 2021.
* Budgetary outlay of ₹25,938 crore.
* Aims to enhance manufacturing capabilities for Advanced Automotive Technology (AAT) products, including EVs.
* **Production Linked Incentive (PLI) Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage:**
* Notified on June 9, 2021.
* Budgetary outlay of Rs.18,100 crore.
* Aims to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries.
* **PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme:**
* Notified on September 29, 2024.
* Outlay of Rs.10,900 crore.
* Supports electric vehicles including e-2W, e-3W, e-Trucks, e-buses & e-Ambulances.
* Includes EV public charging stations and upgrades to testing agencies.
* **PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme:**
* Notified on October 28, 2024.
* Outlay of Rs. 3,435.33 crore.
* Aims to support deployment of more than 38,000 electric buses.
* Provides 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):**
* Notified on March 15, 2024.
* Aims to promote the manufacturing of electric passenger cars in India.
* Requires applicants to invest a minimum of Rs.4,150 crore.
* Requires a minimum Domestic Value Addition (DVA) of 25% at the end of the third year and 50% at the end of the fifth year.
**Impact Analysis**
**Domestic Manufacturers:**
* **Impact:** Encouraged to invest in Advanced Automotive Technology and manufacturing capabilities for electric vehicles and related components through PLI schemes and the SPMEPCI.
* **Action Required:** Evaluate the various schemes and align investments to meet eligibility criteria.
**Auto Component Manufacturers:**
* **Impact:** Incentive to enhance manufacturing capabilities for Advanced Automotive Technology products.
* **Action Required:** Evaluate the PLI-Auto scheme and align investments to meet eligibility criteria.
**Battery Manufacturers:**
* **Impact:** Opportunities to establish domestic manufacturing capacity for advanced chemistry cell batteries through the PLI scheme for ACC Battery Storage.
* **Action Required:** Evaluate the PLI scheme for ACC Battery Storage and align investments to meet eligibility criteria.
**Electric Vehicle Operators (e-Bus):**
* **Impact:** Payment security in case of default by Public Transport Authorities through the PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme.
* **Action Required:** Familiarize themselves with the terms and conditions of the PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme.
**Public Transport Authorities (PTAs):**
* **Impact:** Need to ensure timely payments to e-bus operators to avoid defaults and maintain the effectiveness of the PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme.
* **Action Required:** Adhere to the payment terms outlined in the PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme.
**Consumers:**
* **Impact:** Greater availability of domestically manufactured electric vehicles, batteries, and charging infrastructure due to various incentive schemes.
* **Action Required:** None specified.
Key Entities Referenced
Ministry of Heavy Industries (MHI): The primary government body implementing schemes to promote Electric Vehicles in India.
Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-Auto): Scheme to enhance India's manufacturing capabilities for Advanced Automotive Technology (AAT) products, including EVs.
Production Linked Incentive (PLI) Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage: Scheme for manufacturing of ACC in the country with the aim to establish a competitive domestic manufacturing ecosystem.
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme: Scheme that includes support for electric vehicles and EV public charging stations.
PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: Scheme to support deployment of electric buses and provide payment security to e-bus operators.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 1553
ANSWERED ON 09.12.2025
REVIEW OF EXISTING ELECTRIC VEHICLE POLICY
1553. SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:
SHRI CHAVAN RAVINDRA VASANTRAO:
SHRI SUDHEER GUPTA:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) whether the Government proposes to reconsider or revise the existing Electric Vehicle (EV)
policy in view of emerging technological, industrial and market developments along with pollution
issues by petrol and diesel vehicles;
(b) if so, the details thereof and steps taken in this regard;
(c) the details of key issues or provisions of the present EV policy that are likely to be reviewed;
(d) the time by which the said policy is likely to be finalised and notified;
(e) the manner in which the proposed changes are likely to support domestic manufacturers, promote
EV adoption and ensure affordability for consumers; and
(f) the details of other measures taken/being taken by the Government to encourage Electric Vehicles
in the country?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a) to (e): No such proposal is under consideration.
(f): The Ministry of Heavy Industries (MHI) is implementing the following schemes to encourage
Electric Vehicles in the country :-
i. 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 23rd September, 2021, for enhancing India's manufacturing capabilities for Advanced Automotive
Technology (AAT) products, including EVs, with a budgetary outlay of ₹25,938 crore.
ii. Production Linked Incentive (PLI) Scheme for National Programme on Advanced Chemistry
Cell (ACC) Battery Storage : The Government on 9th June, 2021 notified the 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.
iii. PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme: This
scheme with an outlay of Rs.10,900 crore has been notified on 29th September, 2024. This scheme includes
support for electric vehicles including e-2W, e-3W, e-Trucks, e-buses & e-Ambulances. Further, EV public
charging stations and upgradation of testing agencies is also included in this scheme.-2-
iv. 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).
v. Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI) was
notified on 15thMarch, 2024 to promote the manufacturing of electric cars in India. This requires applicants
to invest a minimum of Rs.4,150 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.
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