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GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
RAJYA SABHA
UNSTARRED QUESTION NO. 2329
ANSWERED ON 07.08.2026
PROMOTION OF ELECTRIC VEHICLE MANUFACTURING AND CHARGING
INFRASTRUCTURE IN GUJARAT
2329. SHRI BABUBHAI JESANGBHAI DESAI:
Will the Minister of Heavy Industries be pleased to state:
(a) whether Government has taken steps to promote the manufacturing of Electric Vehicles (EVs),
batteries and automobile components in Gujarat;
(b) if so, the details of projects approved and financial assistance provided under various Central
schemes during the last three years;
(c) the total investment attracted and employment generated through such projects in the State;
and
(d) the measures taken to strengthen the EV ecosystem, including expansion of public charging
infrastructure, battery manufacturing and research and development facilities in Gujarat?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a) to (d): To promote electric vehicle manufacturing (including components), batteries, Ministry of
Heavy Industries (MHI) administers two Production Linked Incentive (PLI) Scheme as below:
i. PLI Scheme for Automobile & Auto Component Industry in India is notified on
23.09.2021, for enhancing India's manufacturing capabilities for Advanced Automotive
Technology (AAT) products with a budgetary outlay of ₹25,938 crore. Expenditure on
engineering research & development, product design & development is eligible investment
under the scheme. Approved applicants are free to set up units anywhere in the country and as
on 31.03.2026, fourteen (14) units have been set up in Gujarat. The status of implementation
across all states (incl Gujarat) is as below:-
Parameter Cumulative till 31.03.2026
Investment (Rs. crore) 44,326
Incremental Sales (Base Year FY2019-20) (Rs. crore) 52,414
Employment generated (Nos.) 67,820
Incentive disbursed (Rs. crore) 2,386.36
ii. PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery
Storage has been notified on 09.06.2021 for manufacturing of ACC in the country with a
budgetary outlay of ₹18,100 cr. Out of 50 GWh capacity, 40 GWh ACC capacity is end-use
agnostic and can be utilized for any application, including EVs. PLI ACC scheme is a national
programme and it does not define or mandate particular locations for setting up cell
manufacturing units. Till 04.08.2026, no beneficiary firm has claimed any incentive under the
PLI ACC scheme. Two PLI ACC beneficiary firms have chosen manufacturing facility in
Gujarat, as detailed under:-2-
Sl. Investment Direct
Beneficiary firms under PLI ACC Scheme Location
No. (in ₹ Crore) Employment
1. Reliance New Energy Battery Storage Ltd. Jamnagar, 1,144 277
2. Reliance New Energy Battery Ltd. Gujarat 2,018 95
TOTAL 3,162 372
Additionally, following initiatives have also been taken up by Government to promote
the manufacturing of EVs and automobile components:–
i. PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme has
been notified on 29.09.2024 with an outlay of ₹10,900 crore. This scheme incentivizes EVs
including e-2W, e-3W, e-Trucks, e-buses and e-Ambulances. An allocation of Rs 2,000 crore
has been made for installation of EV Public Charging Stations under PM E-Drive Scheme on
Pan India basis (including Gujarat).
ii. Union Cabinet approved the Scheme to Promote Manufacturing of Sintered Rare Earth
Permanent Magnet (REPM) with a financial outlay of Rs. 7,280 crore on 26.11.2025, to
establish 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing capacity
in the country. The said scheme was notified on 15.12.2025.
iii. Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI) was
notified on 15.03.2024 to promote the manufacturing of electric cars in India. This scheme
requires applicants to invest a minimum of ₹4,150 crore and to achieve minimum DVA of
25% at the end of third year and DVA of 50% at the end of fifth year.
iv. GST on EVs and chargers/ charging stations for electric vehicles has been reduced to 5%.
v. Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles
will be given green license plates and be exempted from permit requirements. They had issued
advisory to states to waive road tax on EVs, which in turn will help reduce the initial cost of
EVs.
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