Ministry of Heavy Industries unveils new schemes to  boost electric vehicle adoption

The Ministry of Heavy Industries has introduced a series of new schemes aimed at accelerating the adoption of electric vehicles (EVs) in India.

The Electric Mobility Promotion Scheme 2024 (EMPS), with a budget of ₹778 crore, will run from 1 April 2024 to 30 September 2024. It will offer incentives to buyers of electric two-wheelers (e-2Ws) and electric three-wheelers (e-3Ws), making it easier for people to switch to electric transport.

The Production Linked Incentive Scheme for Automobile and Auto Component Industry (PLI-AAT), with a budget of ₹25,938 crore, will support various electric vehicles, including e-2Ws, e-3Ws, e-4Ws, e-buses, and e-trucks. This scheme aims to boost domestic production and growth in the sector.

Another key initiative is the Production Linked Incentive Scheme for Advanced Chemistry Cell Manufacturing (PLI-ACC), which has a budget of ₹18,100 crore. This scheme supports the local production of advanced battery cells, crucial for electric vehicle batteries.

The Ministry has also introduced a scheme to promote the manufacturing of electric passenger cars, aiming to attract global investment and position India as a major EV manufacturing hub.

The FAME India Scheme, which began in 2015, has played a significant role in promoting electric and hybrid vehicles. Under Phase I, which ended in March 2019, the scheme supported around 2.8 lakh xEVs, including 425 electric and hybrid buses and 520 charging stations. Technology development projects funded during this phase amounted to ₹158 crore, supporting institutions such as ARAI, IIT Madras, and IIT Kanpur.

Phase II of the FAME India Scheme started on 1 April 2019 with a total budget of ₹11,500 crore. It focuses on electrifying public and shared transport, supporting over 16 lakh electric vehicles, including e-2Ws, e-3Ws, e-4Ws, and e-buses. As of 31 July 2024, claims for 16,71,606 electric vehicles amounting to ₹6,825 crore have been submitted. Progress includes the supply of 4,853 e-buses and the establishment of 7,432 public charging stations.

Recently, the Ministry allocated ₹800 crore in subsidies to oil marketing companies to set up EV charging stations. An additional ₹73.5 crore was allocated in March 2024 to upgrade and install new fast-charging stations across the country.

These updates were provided by Bhupathi Raju Srinivasa Varma, Minister of State for Heavy Industries and Steel, in a written reply to the Rajya Sabha.