**Policy Summary: Promoting Electric Vehicle Ecosystem in India**
The Ministry of Heavy Industries (MHI) has implemented several schemes to promote the adoption of electric vehicles (EVs) across India, including rural and semi-urban areas. These initiatives aim to improve the accessibility and affordability of EVs.
Key Programs:
1. **Faster Adoption and Manufacturing of Hybrid Electric Vehicles in India Phase II (FAME-II):** This scheme was implemented from April 1, 2019, to March 31, 2024, with a total budgetary support of Rs. 11,500 crore. It incentivized the purchase of electric two-wheelers (e2Ws), electric three-wheelers (e3Ws), and electric four-wheelers (e4Ws) through upfront price reductions provided by Original Equipment Manufacturers (OEMs). OEMs were later reimbursed by MHI.
2. **PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme:** Launched on September 29, 2024, with an outlay of Rs. 10,900 crore, this scheme supports demand incentives for e2Ws, e3Ws, electric trucks (e-Trucks), and electric ambulances (e-Ambulances). The Electric Mobility Promotion Scheme (EMPS) 2024, which provided incentives for e2Ws and e3Ws from April 1, 2024, to September 30, 2024, has been subsumed under the PM EDRIVE scheme. Similar to FAME-II, incentives are provided upfront by OEMs and later claimed from MHI. The PM EDRIVE Scheme mandates compliance with a Phased Manufacturing Programme (PMP) to promote the domestic manufacturing of EVs and their components.
3. **PM eBus Sewa Scheme:** Launched on August 16, 2023, by the Ministry of Housing and Urban Affairs (MoHUA), this centrally sponsored scheme aims to augment city bus operations with a Central Assistance (CA) of Rs. 20,000 crore for deploying 10,000 electric buses on a Public-Private Partnership (PPP) model. Cities with populations between 300,000 and 4 million, and State/UT capitals with populations less than 300,000 (as per the 2011 census), are eligible. Central Assistance is provided per kilometer of bus operation for 10 years: Rs. 24 for standard (12-meter) buses, Rs. 22 for midi (9-meter) buses, and Rs. 20 for mini (7-meter) buses. 100% Central assistance is given for Behind-the-Meter (BTM) power infrastructure development. Central assistance is also available for civil infrastructure of depots.
* 60% for cities of states
* 90% for capital cities of Hilly states, North-East States, and UTs with legislatures
* 100% for capital cities of UTs without legislatures
As of July 31, 2025, 7,293 e-buses have been sanctioned to 14 States and 4 UTs under the scheme. Rs. 1,062.74 crore has been sanctioned for 85 Civil Depot Projects and 88 Behind-The-Meter Power Infrastructure projects across 12 States and 3 UTs. A total of Rs. 475.44 crore has been released to 9 States/UTs for associated infrastructure development.
**State/UT-wise eBus Sanctions (as of July 31, 2025):**
* Chandigarh: 100
* Gujarat: 450
* Haryana: 450
* Jammu & Kashmir: 200
* Maharashtra: 1,559
* Odisha: 400
* Punjab: 347
* Meghalaya: 50
* Bihar: 400
* Puducherry: 75
* Assam: 100
* Ladakh: 15
* Madhya Pradesh: 582
* Rajasthan: 675
* Chhattisgarh: 240
* Uttarakhand: 150
* Andhra Pradesh: 750
* Karnataka: 750
* **Total:** 7,293
**Funds Released to States/UTs under PM eBus Sewa Scheme:**
* Maharashtra: Rs. 200.18 crore
* Chhattisgarh: Rs. 30.19 crore
* Rajasthan: Rs. 44.46 crore
* Chandigarh: Rs. 11.87 crore
* Assam: Rs. 6.47 crore
* Odisha: Rs. 47.72 crore
* Gujarat: Rs. 28.94 crore
* Bihar: Rs. 87.55 crore
* Punjab: Rs. 18.06 crore
* **Total:** Rs. 475.44 crore
**Source:** Information provided by the Minister of State for Heavy Industries and Steel, Shri Bhupathiraju Srinivasa Varma, in a written reply in the Lok Sabha.
Key Entities Referenced
Ministry of Heavy Industries: The Indian government ministry responsible for the schemes promoting the electric vehicle ecosystem.
Faster Adoption and Manufacturing of Hybrid Electric Vehicles in India PhaseII FAMEII: A scheme implemented from 01.04.2019 till 31.03.2024 with a total budgetary support of Rs.11,500 to incentivize buyers of e2Ws, e3Ws and e4Ws on pan India basis.
PM Electric Drive Revolution in Innovative Vehicle Enhancement PM EDRIVE Scheme: A scheme with an outlay of Rs.10,900 cr. notified on 29.09.2024 to support demand incentive for e2Ws, e3W, e Trucks, and eAmbulances.
Ministry of Housing and Urban Affairs: The Indian government ministry that launched the PMeBus Sewa Scheme.
PMeBus Sewa Scheme: A Centrally Sponsored Scheme launched on 16 August, 2023, that aims to augment city bus operations in urban areas with Central Assistance CA of Rs.20,000 crore for deploying 10,000 electric buses on PPP model.
Chandigarh: A Union Territory of India, sanctioned 100 buses under the PMeBus Sewa Scheme.
Maharashtra: A state of India, sanctioned 1,559 buses under the PMeBus Sewa Scheme and received Rs. 200.18 crore under PMeBus Sewa Scheme.
Shri Bhupathiraju SrinivasaVarma: Minister of State for Heavy Industries Steel, who provided the written reply in the Lok Sabha.
Ministry of Heavy Industries
PROMOTING EV ECOSYSTEM
Posted On: 05 AUG 2025 4:15PM by PIB Delhi
The Ministry of Heavy Industries (MHI) has implemented following schemes to promote the electric vehicle
(EV) ecosystem to ensure accessibility and affordability of EVs on pan India basis, including in rural and
semi-urban areas :-
I. The Scheme for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India Phase-II
(FAME-II) was implemented from 01.04.2019 till 31.03.2024 with a total budgetary support of
Rs.11,500 to incentivize buyers of e-2Ws, e-3Ws and e-4Ws on pan India basis.The demand incentive
was provided byOriginal Equipment Manufacturer (OEMs) to buyers in the form of an upfront reduction
in purchase price of EVs which is later claimed bythem from MHI.
II. PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme with an
outlay of Rs.10,900 cr. was notified on 29.09.2024 to support demand incentive for e-2Ws, e-3W, e-
Trucks, and e-Ambulances. EMPS 2024 which provided demand incentive for e-2W and e-3W from
01.04.2024 to 30.09.2024 has been subsumed under PM E-DRIVE scheme. Similar to FAME-II, the
demand incentive is being provided by OEMs to buyers in the form of an upfront reduction in purchase
price of EVs which is later claimed by them from MHI.
As per information received from Ministry of Housing and Urban Affairs (MoHUA), Government of India
th
has launched a Centrally Sponsored Scheme titled “PM-eBus Sewa Scheme” on 16 August, 2023, that aims
to augment city bus operations in urban areas with Central Assistance (CA) of Rs.20,000 crore for deploying
10,000 electric buses on PPP model. As per the extant guidelines of the scheme, cities with a population
between 3-40 lakhs and other State/UT Capitals with less than 3 lakh population as per census 2011 are
eligible to participate in the scheme.
As per scheme guidelines, Central Assistance is admissible on Per-km of bus operation for 10 years,
depending on the size of bus: Rs.24 for standard buses (12 metre), Rs. 22 for midi buses (9 metre) and Rs.20
for mini buses (7 metre). Further 100% Central assistance is given for development of Behind-the-meter
power infrastructure. Central assistance is also given for Civil infrastructure of Depot in the following
manner:
I. 60% for cities of states,
II. 90% central assistance to capital cities of Hilly states /North-East States /UTs with legislature; and
III. 100% central assistance to capital cities of UTs without legislature.
Under the Scheme, out of 10,000 e-buses, 7,293 e-buses have been sanctioned to 14 States and 4 UTs so far.
Details of State /UT wise buses sanctioned are attached as Annexure-I.
As on date, Rs.1,062.74 crore has been sanctioned for 85 Civil Depot Projects and 88 Behind-The-Meter-
Power Infra projects across 12 States and 3 UTs. Out of this sanctioned amount, a total of Rs. 475.44 crore
has been released to 9 States/UTs for development of Associated Infrastructure i.e. Behind-The-Meter-Power
and Civil Depot Infrastructure. Details of funds released are attached as Annexure-II.
PM E-DRIVE Scheme mandates compliance to Phased Manufacturing Programme (PMP) requiring
progressive localization of EV components which inter-alia promotes domestic manufacturing of EV and its
components supply chain. Startups and MSMEs including in the State of Tripura may indirectly benefit from
the scheme because of PMP mandate of sourcing components locally.Annexure-I
e-Buses sanctioned under PM-eBusSewa Scheme (as on 31.07.2025)
Sl.No. State /UT No. of buses sanctioned
1. Chandigarh 100
2. Gujarat 450
3. Haryana 450
4. J&K 200
5. Maharashtra 1,559
6. Odisha 400
7. Punjab 347
8. Meghalaya 50
9. Bihar 400
10. Puducherry 75
11. Assam 100
12. Ladakh 15
13. Madhya Pradesh 582
14. Rajasthan 675
15. Chhattisgarh 240
16. Uttarakhand 150
17. Andhra Pradesh 750
18. Karnataka 750
Total 7,293
Annexure-II
Funds Released to States /UTs under PM-eBus Sewa Scheme
Sr. No. State /UT Amount Released (in Rs. crore)
1. Maharashtra 200.18
2. Chhattisgarh 30.19
3. Rajasthan 44.46
4. Chandigarh 11.87
5. Assam 6.47
6. Odisha 47.72
7. Gujarat 28.94
8. Bihar 87.55
9. Punjab 18.06
Total 475.44
This information was given by the Minister of State for Heavy Industries & Steel, Shri Bhupathiraju SrinivasaVarma in a written reply in the Lok Sabha today.
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TPJ/NJ
(Release ID: 2152522)