India’s electric mobility landscape is set for a significant boost as the Ministry of Heavy Industries (MHI) announced a comprehensive review of existing Electric Vehicle (EV) policies aimed at accelerating clean transportation, domestic manufacturing, and nationwide EV infrastructure. The update, presented in a written reply to the Lok Sabha by Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma, highlights the country’s commitment to strengthening its EV ecosystem through a series of targeted, well-funded national schemes.
At the centre of this policy framework is the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry (PLI-Auto). Introduced on 23 September 2021 with an outlay of ₹25,938 crore, the scheme focuses on catalysing India’s capabilities in manufacturing Advanced Automotive Technology (AAT) products, including next-generation EV components. By promoting domestic value addition and reducing dependence on imports, the scheme plays a vital role in positioning India as a global EV manufacturing hub.
Complementing this initiative is the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage, launched on 9 June 2021 with a budget of ₹18,100 crore. The ACC scheme seeks to establish a strong domestic supply chain for high-performance battery technologies, a critical component of the EV ecosystem. Designed to support the creation of at least 50 GWh of ACC battery manufacturing capacity, the scheme aims to reduce battery costs, enhance energy security, and foster technological innovation in the sector.
To accelerate EV adoption across multiple vehicle categories, the Government introduced the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme on 29 September 2024. With an allocation of ₹10,900 crore, PM EDRIVE covers a comprehensive range of vehicles—electric two-wheelers, three-wheelers, trucks, buses, and even ambulances. The scheme also supports the expansion of public charging infrastructure and the upgradation of national testing agencies, ensuring both safety and reliability as the EV market scales rapidly.
Public transport electrification receives dedicated support through the PM e-Bus Sewa – Payment Security Mechanism (PSM) Scheme, notified on 28 October 2024. With an outlay of ₹3,435.33 crore, the scheme aims to deploy over 38,000 electric buses across Indian cities. A key feature is the payment security mechanism, which safeguards EV bus operators against payment delays or defaults from Public Transport Authorities (PTAs). By ensuring predictable financial flows, the scheme encourages more operators to participate, thereby strengthening India’s urban electric mobility network.
In addition, the Government introduced the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI) on 15 March 2024. This scheme specifically targets the domestic production of electric cars, requiring participating manufacturers to invest a minimum of ₹4,150 crore. It also mandates achieving a minimum Domestic Value Addition (DVA) of 25% by the third year and 50% by the fifth year. This initiative is aligned with India’s broader industrial goals of boosting local manufacturing, fostering innovation, and creating high-skilled green jobs.
Collectively, these schemes shape a robust multi-layered policy ecosystem aimed at accelerating EV adoption, supporting industrial growth, and enhancing India’s long-term environmental sustainability. By strengthening domestic supply chains and expanding nationwide charging and public transport systems, the Government continues to lay the foundation for a cleaner, more energy-efficient future.
As global momentum for green mobility intensifies, India’s comprehensive policy framework demonstrates its resolve to emerge as a leader in sustainable transportation and advanced clean technologies.
