**Executive Summary**
The Ministry of Heavy Industries (MHI) is implementing several schemes to promote electric vehicles (EVs) in India. This document reviews the existing policy including five specific schemes with their respective budgetary outlays and objectives. Schemes were notified between September 2021 and October 2024.
**Key Points / Main Content**
* **Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry (PLI-Auto)**
* Notified on 23rd September, 2021
* Aims to enhance manufacturing capabilities for Advanced Automotive Technology (AAT) products including EVs
* Budgetary outlay of ₹25,938 crore
* **Production Linked Incentive (PLI) Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage**
* Notified on 9th June, 2021
* Aims to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries
* Budgetary outlay of ₹18,100 crore
* **PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme**
* Notified on 29th September, 2024
* Includes support for electric vehicles (e-2W, e-3W, e-Trucks, e-buses & e-Ambulances) and EV public charging stations
* Budgetary outlay of ₹10,900 crore
* **PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme**
* Notified on 28.10.2024
* Aims to support the deployment of more than 38,000 electric buses
* Provides payment security to e-bus operators in case of default by Public Transport Authorities (PTAs)
* Budgetary outlay of ₹3,435.33 crore
* **Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI)**
* Notified on 15th March, 2024
* Aims to promote the manufacturing of electric cars in India
* Requires applicants to invest a minimum of ₹4,150 crore
* Requires applicants to achieve a minimum DVA of 25% by the end of the third year and 50% by the end of the fifth year.
**Impact Analysis**
**Automobile and Auto Component Manufacturers**
* **Impact**: Enhanced manufacturing capabilities for Advanced Automotive Technology (AAT) products including EVs.
* **Action Required**: Participate in the PLI-Auto scheme to benefit from the incentives.
**ACC Battery Manufacturers**
* **Impact**: Opportunity to establish a competitive domestic manufacturing ecosystem for ACC batteries.
* **Action Required**: Participate in the PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage.
**Electric Vehicle Manufacturers (e-2W, e-3W, e-Trucks, e-buses & e-Ambulances)**
* **Impact**: Support for manufacturing and deployment of various types of electric vehicles.
* **Action Required**: Participate in the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme.
**E-bus Operators**
* **Impact**: Payment security in case of default by Public Transport Authorities (PTAs).
* **Action Required**: Participate in the PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme.
**Electric Passenger Car Manufacturers**
* **Impact**: Promotion of manufacturing of electric cars in India.
* **Action Required**: Participate in the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI).
Key Entities Referenced
Ministry of Heavy Industries (MHI): Primary department responsible for implementing Electric Vehicle schemes 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 of establishing a competitive domestic manufacturing ecosystem for ACC batteries.
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme: Scheme that supports electric vehicles and EV charging infrastructure.
PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: Scheme to support the deployment of electric buses and provide payment security to e-bus operators.
Ministry of Heavy Industries
REVIEW OF EXISTING ELECTRIC VEHICLE
POLICY
प्रव तथ: 09 DEC 2025 3:43PM by PIB Delhi
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.
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.
This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa
Varma in a written reply in the Lok Sabha today.
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