In a detailed submission to Parliament the Ministry of Heavy Industries has outlined its multi-pronged strategy to accelerate India’s electric vehicle (EV) revolution. Minister of State Bhupathiraju Srinivasa Varma informed the Lok Sabha that the government is currently operating five major schemes with a combined financial outlay exceeding ₹58,000 crore to boost electric mobility and domestic manufacturing.
Here is a breakdown of the key initiatives driving India’s EV ecosystem:
1. PLI Scheme for Automobiles & Auto Components
- Outlay: ₹25,938 crore
- Goal: Strengthen manufacturing capacity in Advanced Automotive Technology (AAT) components, including those for EVs. This scheme incentivizes the production of high-value, cutting-edge auto parts within India.
2. PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage
- Outlay: ₹18,100 crore
- Goal: Create a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries. This targets the heart of an EV—its battery—to reduce import dependence and build a local supply chain.
3. PM Electric Drive Revolution (PM-eDRIVE) Scheme
- Outlay: ₹10,900 crore
- Goal: Provide direct support for a wide range of EVs, including two-wheelers, three-wheelers, trucks, buses and ambulances. It also funds public charging infrastructure and the expansion of testing facilities across the country.
4. PM e-Bus Sewa – Payment Security Mechanism
- Outlay: ₹3,435.33 crore
- Goal: Facilitate the deployment of over 38,000 electric buses by providing payment assurance to bus operators. This de-risks investments for operators in case of payment delays by public transport authorities.
5. Scheme for Promotion of Manufacturing of Electric Passenger Cars
- Outlay: Notified in March 2024
- Goal: Attract global automakers to manufacture electric cars in India. It requires a minimum investment of ₹4,150 crore and mandates progressive domestic value addition—25% by the third year and 50% by the fifth year.
A Coordinated Push for Self-Reliance
Together, these schemes represent a comprehensive framework designed to tackle the EV transition from all angles: component manufacturing (PLI-Auto), battery production (PLI-ACC), vehicle adoption (PM-eDRIVE), public transport (e-Bus Sewa) and attracting large-scale car manufacturing.
This strategic approach aims not only to reduce emissions and fuel imports but also to position India as a competitive global hub for EV design and production—a critical pillar of the Atmanirbhar Bharat (Self-Reliant India) vision.