In a determined move to curb vehicular pollution and fast-track the adoption of electric vehicles (EVs), the Government of India has introduced a series of high-impact subsidy schemes, primarily aimed at making EVs more affordable for the general public and catalyzing domestic manufacturing of advanced EV technologies.
Announcing the initiatives in a written reply to the Rajya Sabha, Minister of State for Steel and Heavy Industries, Bhupathiraju Srinivasa Varma, confirmed the implementation of multiple flagship schemes by the Ministry of Heavy Industries (MHI) as part of the nation’s green mobility revolution.
Key Schemes Underway:
1. PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE):
Launched on September 29, 2024, the PM E-DRIVE scheme carries a budgetary allocation of ₹10,900 crore and is set to run till March 31, 2026. Targeting electric two-wheelers (e-2Ws) and other electric vehicles, this scheme offers direct subsidies to buyers of EVs priced below a certain threshold, thereby making them more accessible to the public.
2. Production Linked Incentive (PLI) Scheme for Auto and Components (PLI-Auto):
With an impressive outlay of ₹25,938 crore, the PLI-Auto scheme, launched in September 2021, is tailored to boost India’s manufacturing capacity for Advanced Automotive Technology (AAT) products, including electric vehicles and their components. The scheme seeks to position India as a global hub for EV manufacturing.
3. PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage:
Acknowledging the crucial role of battery technology in the EV ecosystem, the Government approved this ₹18,100 crore initiative in May 2021. It incentivizes domestic production of advanced battery storage solutions, which are vital for enhancing EV performance and affordability.
EV Infrastructure Expansion:
In addition to financial subsidies, the Ministry of Power (MoP) has issued fresh Guidelines for Installation and Operation of EV Charging Infrastructure – 2024 to streamline the establishment of charging stations across office complexes and urban buildings. Notable provisions include:
- Allowing building owners to either request a separate electricity meter or use their existing connections to support EV charging at workplaces.
- Permission to apply for enhanced electricity load to meet the growing power demands of EV infrastructure.
While the Ministry of Power does not currently maintain a detailed record of EV charging stations installed in government offices, the new guidelines are expected to encourage widespread adoption and installation of EV-friendly infrastructure.
State-Level Support:
Many State Governments have also launched their own subsidy programs to promote electric vehicle purchases at the local level, complementing the Centre’s efforts in building a nationwide electric mobility network.
With cumulative central outlays surpassing ₹55,000 crore and new regulatory support structures taking shape, India’s electric mobility landscape is gearing up for an accelerated transformation — one subsidy at a time.
