The Ministry of Heavy Industries is currently operating five major schemes to boost electric mobility and domestic EV manufacturing, Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma informed the Lok Sabha in a written reply on Tuesday.
The Production Linked Incentive Scheme for Automobiles and Auto Components, notified in September 2021, aims to strengthen India’s manufacturing capacity in Advanced Automotive Technology components, including electric vehicles. The programme has a financial outlay of Rs 25,938 crore.
In addition, the Production Linked Incentive Scheme for Advanced Chemistry Cell Battery Storage, announced in June 2021, seeks to create a competitive ecosystem for domestic production of 50 GWh of ACC batteries. The scheme has an allocation of Rs 18,100 crore.
The PM Electric Drive Revolution in Innovative Vehicle Enhancement scheme, notified in September 2024 with an outlay of Rs 10,900 crore, covers support for electric two-wheelers, three-wheelers, trucks, buses and ambulances. The scheme also includes funding for public charging infrastructure and expansion of testing facilities.
The PM e-Bus Sewa-Payment Security Mechanism scheme, launched in October 2024, has a budget of Rs 3,435.33 crore and is intended to support the deployment of over 38,000 electric buses. The scheme is designed to provide payment assurance to electric bus operators in the event of default by public transport authorities.
To encourage domestic production of electric passenger cars, the government notified the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India in March 2024. The scheme requires applicants to invest at least Rs 4,150 crore and achieve a minimum domestic value addition of 25 percent by the third year, rising to 50 percent by the fifth year.
