Executive Summary:
The Ministry of Heavy Industries (MHI) addresses promoting the EV ecosystem through schemes like FAME-II and PM EDRIVE to enhance EV accessibility and affordability across India. The PMeBus Sewa Scheme, managed by the Ministry of Housing and Urban Affairs (MoHUA), supports deploying electric buses in urban areas, particularly Tier 2 and 3 cities. Startups and MSMEs, including those in Tripura, may indirectly benefit from the PM EDRIVE scheme through its Phased Manufacturing Programme (PMP).
Key Points / Main Content:
EV Promotion Schemes:
* FAME-II: Implemented from April 1, 2019, to March 31, 2024, with a budget of Rs. 11,500 crore, incentivizing e2W, e3W, and e4W purchases.
* PM EDRIVE Scheme: Notified on September 29, 2024, with an outlay of Rs. 10,900 crore, supporting demand incentives for e2W, e3W, e-Trucks, and e-Ambulances. EMPS 2024 is subsumed under this scheme.
* Demand Incentive Mechanism: OEMs provide upfront price reductions to buyers, later claiming the incentive from MHI.
PMeBus Sewa Scheme:
* Objective: Augment city bus operations in urban areas by deploying 10,000 electric buses on a PPP model with Central Assistance (CA) of Rs. 20,000 crore.
* Eligibility: Cities with a population between 3-40 lakhs and State/UT Capitals with less than 3 lakh population (as per Census 2011) are eligible.
* Central Assistance: Provided per km of bus operation for 10 years (Rs. 24 for 12m buses, Rs. 22 for 9m buses, Rs. 20 for 7m buses).
* Infrastructure Support: 100% Central assistance for behind-the-meter power infrastructure and partial assistance for civil depot infrastructure (60-100% depending on city/state/UT type).
* Sanctions: 7,293 e-buses sanctioned to 14 States and 4 UTs. Rs. 1,062.74 crore sanctioned for 85 Civil Depot Projects and 88 Behind The Meter Power Infra projects across 12 States and 3 UTs. Rs. 475.44 crore released to 9 States/UTs.
PM EDRIVE and MSME/Startup Benefits:
* Phased Manufacturing Programme (PMP): PM EDRIVE mandates progressive localization of EV components, promoting domestic manufacturing.
* Indirect Benefit: Startups and MSMEs, including those in Tripura, may benefit through local sourcing requirements of the PMP.
Impact Analysis:
Original Equipment Manufacturers (OEMs):
* Impact: Responsible for providing upfront demand incentives on EVs and later claiming these incentives from MHI.
* Action Required: Implement the demand incentive mechanism by reducing the upfront purchase price of EVs and claiming the incentives from MHI.
EV Buyers:
* Impact: Benefit from reduced upfront purchase price of EVs through demand incentives.
* Action Required: Purchase eligible EVs to avail of the reduced price.
State and UT Governments:
* Impact: Eligible for central assistance under the PMeBus Sewa Scheme for deploying electric buses and developing associated infrastructure.
* Action Required: Participate in the PMeBus Sewa Scheme, ensure compliance with scheme guidelines, and develop necessary infrastructure.
Startups and MSMEs (Including in Tripura):
* Impact: Potential to benefit indirectly from the PM EDRIVE scheme through the PMP, which encourages local sourcing of EV components.
* Action Required: Align with the PMP requirements and explore opportunities in the EV supply chain.
Ministry of Housing and Urban Affairs (MoHUA):
* Impact: Responsible for managing the PMeBus Sewa Scheme and providing central assistance for deploying electric buses.
* Action Required: Oversee the implementation of the PMeBus Sewa Scheme, ensure compliance with scheme guidelines, and disburse central assistance to eligible entities.
Key Entities Referenced
Scheme for Faster Adoption and Manufacturing of Hybrid Electric Vehicles in India PhaseII FAMEII: A scheme implemented from 01.04.2019 till 31.03.2024 to incentivize buyers of electric vehicles.
PM Electric Drive Revolution in Innovative Vehicle Enhancement PM EDRIVE Scheme: A scheme notified on 29.09.2024 to support demand incentives for various categories of electric vehicles.
Ministry of Heavy Industries MHI: The Indian government ministry responsible for implementing schemes to promote the electric vehicle ecosystem.
PMeBus Sewa Scheme: A centrally sponsored scheme launched on 16th August, 2023, by the Government of India to augment city bus operations in urban areas with electric buses.
Ministry of Housing and Urban Affairs MoHUA: The Indian government ministry that provided information regarding the PMeBus Sewa Scheme.
Tripura: A state in India mentioned in the context of expanding the PM EDRIVE scheme to include startups and MSMEs in the EV supply chain.
Maharashtra: A state in India that has been sanctioned eBuses and has received funds under the PMeBus Sewa Scheme.
Chandigarh: A union territory in India that has been sanctioned eBuses and has received funds under the PMeBus Sewa Scheme.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 2577
ANSWERED ON 05.08.2025
PROMOTING EV ECOSYSTEM
2577. SHRI BIPLAB KUMAR DEB:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) the manner in which the scheme of promoting EV eco system ensure accessibility and
affordability of e-vehicles in rural and semi-urban areas;
(b) the manner in which the scheme is likely to contribute to improving public transportation
infrastructure in Tier-2 and Tier-3 cities;
(c) whether there are any plans to expand the PM E-Drive scheme to include startups and
MSMEs in the EV supply chains with special reference to the State of Tripura; and
(d) if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): 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 by Original Equipment Manufacturer (OEMs) to buyers in the form of an upfront reduction
in purchase price of EVs which is later claimed by them 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.
(b): As per information received from Ministry of Housing and Urban Affairs (MoHUA),
Government of India has launched a Centrally Sponsored Scheme titled “PM-eBus Sewa Scheme” on
16th 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.-2-
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.
(c) & (d): 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-eBus Sewa 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
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