Press Release, 6 August 2025
India’s electric vehicle (EV) journey is no longer a futuristic dream it’s a national mission that’s already transforming lives, industry, and the environment. From local charging points in neighborhoods to high-powered batteries in buses, new government schemes are turning the green dream into reality, and behind every charging port is a story of empowerment.
Power Moves: Key Government Schemes Transforming India’s EV Ecosystem
1. FAME India Phase‑II: Planting the EV seeds (Apr 2019–Mar 2024)
- ₹11,500 crore in budget support
- Demand incentives for e-2W, e-3W, e-4W, e‑buses
- Grants for public charging stations (EV PCS)
2. PM E‑DRIVE (Apr 2024–Mar 2026): Going big on scale
- ₹10,900 crore outlay
- Incentives for e‑2W, e‑3W, e‑trucks, e‑ambulances & e‑buses
- Funds for EV PCSs and upgrading EV testing agencies (₹780 crore allocated)
3. PLI for Advanced Chemistry Cells (ACC): Building the battery future
- ₹18,100 crore to support domestic battery manufacturing
- Aiming for 50 GWh annual ACC production
4. PLI-Auto: Incentivizing home-grown EV tech supply chains
- ₹25,938 crore to boost manufacturing of automotive technology
- Mandates at least 50% domestic value-addition
5. SPMEPCI: Make in India, Electrically
- Requires ₹4,150 crore investment
- Must reach 25% DVA by year 3, 50% by year 5 for electric passenger car production (PME Drive, ieefa.org)
6. PM e‑Bus Sewa PSM (Oct 2024): Electrifying public transport
- ₹3,435 crore scheme
- Deployment support for over 38,000 e‑buses plus payment security mechanism for operators (Press Information Bureau)
Cross‑Ministry POWER-UPS: Policy as a backbone
- Ministry of Power rolled out EV charging standards in Sept 2024 to ensure interoperable infrastructure nationwide. (Press Information Bureau)
- Ministry of Finance slashed GST on EVs to 5% (from 12%) to lower upfront costs.
- MoRTH mandated green license plates for EVs, waived road tax and permits.
- Ministry of Housing & Urban Affairs now requires EV charging hookups in new residential and commercial buildings.
Framing the Future: R&D, innovation, and center-of-excellence momentum
- R&D costs count toward eligible investment under PLI-Auto, ACC, and SPMEPCI schemes.
- Up to 80% funding support for capital goods scheme R&D at top institutes like IITs, IISc., with industry partners covering the rest.
- Centres of excellence are nurturing skills in niche EV technologies previously unavailable in India.
- Autonomous ARCI‑DST labs in Hyderabad are pioneering next-gen batteries—from Li‑S to sodium-ion chemistries, cobalt‑free cathodes, aluminum‑ion cells, thermal management systems, and eco‑friendly electrode fabrication techniques. (Press Information Bureau)
Why This Matters: A Snapshot of Impact
- Over 16 lakh EVs have already been subsidized under FAME-II. (EVMechanica)
- There’s now a clear pipeline: from subsidies and investments to localized battery and vehicle production, reducing dependency on imports.
- New schemes are rapidly building charging infrastructure, electric fleets, and skilled labs to test and design future-ready EVs.
