**Executive Summary**
This document addresses the promotion of Electric Vehicles (EVs) in India to combat rising pollution. It details various government initiatives, including financial incentives and schemes like FAME-II and PLI, aimed at increasing EV adoption, developing domestic manufacturing capabilities, and reducing EV costs. The response was answered on February 13, 2026, and mentions scheme deadlines and goals to be achieved by the end of the third and fifth years.
**Key Points / Main Content**
* **Government Initiatives for EV Promotion:**
* **FAME-II Scheme:** Provides demand incentives for e-2Ws, e-3Ws, and e-4Ws, and grants for e-buses with a budgetary support of Rs. 11,500 crore from 01.04.2019 to 31.03.2024.
* **PLI Scheme for Automobile and Auto Component Industry (PLI-Auto):** Enhances manufacturing capabilities for Advanced Automotive Technology (AAT) products, including EVs, with a budgetary outlay of Rs. 25,938 crore. Notified on 23.09.2021.
* **PLI Scheme for ACC Battery Storage:** Aims to establish a domestic manufacturing ecosystem for 50 GWh of ACC batteries, with a budgetary outlay of Rs. 18,100 crore. Notified on 09.06.2021.
* **PM Electric Drive Revolution (PM EDRIVE) Scheme:** Incentivizes approximately 28.27 lakh EVs (e-2W, e-3W, e-Trucks, e-buses, e-Ambulances), EV public charging stations (EV PCS) and upgradation of testing agencies, with an outlay of Rs. 10,900 crore. Notified on 29.09.2024.
* **PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme:** Supports the deployment of over 38,000 electric buses with an outlay of Rs. 3,435.33 crore. Notified on 28.10.2024.
* **Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI):** Promotes electric car manufacturing, requiring a minimum investment of Rs. 4,150 crore and achieving DVA of 25% by the end of the third year and 50% by the end of the fifth year. Notified on 15th March, 2024.
* **Efforts to Reduce EV Costs:**
* Direct subsidies under PM E-DRIVE to lower purchase prices.
* Reduced GST on EVs (12% to 5%) and chargers/charging stations (18% to 5%). States are advised to waive road tax and registration fees.
* PLI schemes (ACC and Auto) aim to lower costs through economies of scale and reduced import dependency.
* **EV Charging Infrastructure:**
* 29,151 EV public charging stations (EVPCS) installed.
* Rs. 2,000 crore allocated under PM E-DRIVE Scheme for EVPCS deployment across India.
* **Long-Range EV Battery Development:**
* Supported through the PLI-ACC scheme with Rs. 18,100 crore allocation.
* Battery Management System (BMS) is eligible under PLI-Auto.
* Traction battery pack is mandatory under FAME-II and PM E-DRIVE.
**Impact Analysis**
**EV Manufacturers:**
* **Impact:** Beneficiaries of PLI schemes (Auto and ACC), sales-linked subsidies.
* **Action Required:** Align manufacturing strategies to meet scheme requirements, including investment and DVA targets.
**Consumers:**
* **Impact:** Reduced purchase price through direct subsidies, lower GST, and potential waiver of road tax and registration fees.
* **Action Required:** Stay informed about available incentives and tax benefits when purchasing EVs.
**Public Transport Authorities (PTAs):**
* **Impact:** Support for deploying electric buses under the PM e-Bus Sewa scheme.
* **Action Required:** Evaluate and implement electric buses to improve public transportation.
**Battery Manufacturers:**
* **Impact:** Support through the PLI-ACC scheme for domestic manufacturing of advanced chemistry cells.
* **Action Required:** Invest in domestic manufacturing capabilities to qualify for PLI benefits.
Key Entities Referenced
Ministry of Heavy Industries (MHI): The primary government body responsible for implementing schemes related to promotion of Electric Vehicles in India.
Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II: A key scheme implemented by the government to provide incentives for the adoption and manufacturing of electric vehicles, including demand incentives and grants.
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme: A scheme to incentivize electric vehicle adoption and enhance the EV ecosystem through subsidies, charging infrastructure support, and upgrades to testing agencies.
Production Linked Incentive (PLI) Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage: A scheme designed to boost domestic manufacturing of advanced chemistry cell batteries for electric vehicles.
Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-Auto): A scheme designed to boost domestic manufacturing capabilities for Advanced Automotive Technology products, including EVs and their components.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
RAJYA SABHA
UNSTARRED QUESTION NO. 1681
ANSWERED ON 13.02.2026
PROMOTION OF ELECTRIC VEHICLES IN VIEW OF RISING POLLUTION
LEVELS IN MAJOR CITIES
1681. DR. M. THAMBIDURAI:
Will the Minister of Heavy Industries be pleased to state:
(a) the steps being taken by Government to promote Electric Vehicles (EVs) in view of rising
pollution levels in major cities;
(b) whether Government proposes to reduce the overall cost of EVs, including battery costs, to
make them more affordable for the public;
(c) the number of public EV charging stations installed so far and the targets set for the next three
years;
(d) whether Government plans to support the development of long-range EV batteries and
associated technologies; and
(e) the details of schemes launched to encourage higher adoption of EVs across the country?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a) & (e): The following measures have been taken by Government to promote Electric
Vehicles (EVs) in view of rising pollution levels in major cities :-
1. The Ministry of Heavy Industries (MHI) has implemented following schemes : -
(i) 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 01.04.2019 to 31.03.2024 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). FAME-II has supported the sale of approximately 16.71 lakh
electric vehicles including e-2Ws, e-3Ws and e-4Ws and 6,862 e-buses were sanctioned for
various cities out of which 5,195 e-buses have been deployed as on 07.02.2026.
(ii) 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 23.09.2021, for enhancing India's manufacturing capabilities for
Advanced Automotive Technology (AAT) products, including EVs, with a budgetary outlay of
Rs.25,938 crore.
(iii) Production Linked Incentive (PLI) Scheme for National Programme on Advanced
Chemistry Cell (ACC) Battery Storage : The Government on 09.06.2021 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.-2-
(iv) 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 29.09.2024. This
scheme supports incentivization of approximately 28.27 lakh electric vehicles (EVs) including e-
2W, e-3W, e-Trucks, e-buses and e-Ambulances. Further, EV public charging stations (EV PCS)
and upgradation of testing agencies is also included in this scheme. An allocation of Rs.4,391
crore has been made under the scheme for deployment of 14,028 e-buses out of which 13,800 e-
buses have been allocated in seven cities having four million plus population including Delhi,
Bengaluru, Hyderabad, Mumbai, Ahmedabad, Pune and Surat.
(v) 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 this scheme is to provide payment security to e-bus
operators in case of default by Public Transport Authorities (PTAs).
(vi) Scheme for Promotion of Manufacturing of Electric Passenger Cars in India
(SPMEPCI) was notified on 15th March, 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.
(b): Yes, the Government has taken following steps to reduce the overall cost of electric
vehicles, including battery costs, to make EVs affordable for the public :
(i) Direct Subsidies: Upfront demand incentives under PM E-DRIVE to reduce the purchase
price for consumers.
(ii) Tax Benefits: GST on electric vehicles has been reduced from 12% to 5%, and on
chargers/charging stations from 18% to 5%. Additionally, States have been advised to waive road
tax and registration fees.
(iii) Domestic Manufacturing: The PLI-ACC and PLI-Auto schemes aim to lower costs by
creating economies of scale and reducing dependency for advanced chemistry battery cells and
EVs & EV components, respectively, by providing sales linked subsidy to manufacturers.
Through these combined measures, the Government is actively addressing the higher cost
of EVs and working towards making them affordable.
(c): As per inputs received from BHEL, total 29,151 EV public charging stations (EVPCS)
have been installed in the country. No such targets have been fixed, however, an allocation of
Rs.2,000 crore has been made under the PM E-DRIVE Scheme for deployment of adequate
number of EVPCS on pan India basis.
(d): Government is supporting the development of long-range EV batteries through PLI-ACC
scheme which has an allocation of Rs.18,100 crore to support sales of Advanced Chemistry Cell
(ACC).
Battery management system (BMS) is included as an eligible product under PLI-Auto
scheme.
Traction battery pack is a mandatory component under phased manufacturing programme
(PMP) of FAME-II and PM E-DRIVE schemes.
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