The Ministry of Heavy Industries provided a comprehensive update on India's electric vehicle support ecosystem, confirming that no National Electric Vehicle Policy or National Framework is under consideration. Instead, the government is implementing multiple schemes with a combined budgetary outlay of approximately ₹75,873 crore to develop a balanced EV ecosystem.
Six major schemes are currently operational: The FAME India Scheme Phase-II implemented from April 1, 2019, to March 31, 2024, with ₹11,500 crore budgetary support has already supported the sale of approximately 16.72 lakh electric vehicles (including e-2Ws, e-3Ws, and e-4Ws) and deployed 5,197 electric buses as of June 30, 2026, while also allocating ₹912.50 crore for EV public charging stations.
The Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry, notified on September 23, 2021, has a budgetary outlay of ₹25,938 crore for enhancing manufacturing capabilities for Advanced Automotive Technology products including EVs. The PLI Scheme for National Programme on Advanced Chemistry Cell Battery Storage, notified on June 9, 2021, with ₹18,100 crore outlay, aims to establish domestic manufacturing ecosystem for 50 GWh of ACC batteries.
The newer PM EDRIVE Scheme, notified on September 29, 2024, with ₹10,900 crore outlay, supports incentivization of approximately 28.30 lakh electric vehicles including e-2W, e-3W, e-Trucks, e-buses and e-Ambulances, plus grants for EV charging stations and testing agency upgrades. Specifically, ₹4,391 crore is allocated for deployment of 14,028 e-buses with 13,800 allocated to seven cities (Delhi, Bengaluru, Hyderabad, Mumbai, Ahmedabad, Pune and Surat) and 200 to Jammu & Kashmir, while ₹2,000 crore is allocated for pan-India EV charging stations.
The PM e-Bus Sewa-Payment Security Mechanism Scheme, notified on October 28, 2024, with ₹3,435.33 crore outlay, aims to support deployment of more than 38,000 electric buses by providing payment security to e-bus operators against default by Public Transport Authorities. The Scheme for Promotion of Manufacturing of Electric Passenger Cars in India, notified on March 15, 2024, requires minimum investment of ₹4,150 crore and mandates Domestic Value Addition of 25% by third year and 50% by fifth year.
Additional supportive initiatives include reduced GST of 5% on electric vehicles and chargers/charging stations, green license plates for battery-operated vehicles with exemption from permit requirements, and advisory to states to waive road tax on EVs to reduce initial ownership costs.