Ministry of Heavy Industries Drives Electric Mobility Revolution with Substantial Subsidies and Incentives

The Ministry of Heavy Industries (MHI) is accelerating the adoption of electric vehicles (EVs) in India through its robust initiatives and substantial financial support. As of December 11, 2023, under the second phase of the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME India Phase II) Scheme, MHI has granted a noteworthy subsidy of Rs. 5294.00 crore to electric vehicle manufacturers, facilitating the sale of 11,79,669 electric vehicles.

Breakdown of Electric Vehicles Sold:

1. 1. Two-Wheelers: 10,42,110
   2. Three-Wheelers: 1,22,690
   3. Four-Wheelers: 14,869

In addition to promoting electric vehicles, MHI has sanctioned 6862 electric buses for intracity operations, with 3487 buses already supplied to State Transport Undertakings (STUs) by November 29, 2023.

To bolster the EV infrastructure, the ministry has allocated Rs. 800 crore as capital subsidy to three Oil Marketing Companies (OMCs) under the Ministry of Petroleum and Natural Gas (MoPNG) for the establishment of 7,432 electric vehicle public charging stations.

Furthermore, MHI has introduced two Production Linked Incentive (PLI) schemes aimed at fostering domestic manufacturing of Advanced Automotive Technology products, including electric vehicles and advanced chemistry cells.

1. 1. PLI Scheme for Automobile and Auto Component Industry: With a budgetary outlay of Rs. 25,938 crore, this scheme offers financial incentives to boost the production of electric vehicles and their components, providing incentives of up to 18% of eligible sales.
   2. National Programme on Advanced Chemistry Cells (ACC) Battery Storage: A Rs. 18,100 crore budgetary outlay incentivizes the establishment of Giga-scale ACC manufacturing facilities for 50 Giga Watt hours. These ACCs play a crucial role in promoting the widespread adoption of EVs.

The FAME India Phase II Scheme, formulated for five years starting from April 1, 2019, with a total budgetary support of Rs. 10,000 crore, focuses on electrifying public and shared transportation. The scheme aims to support 7090 e-buses, 5 lakh e-3 wheelers, 55,000 e-4 wheeler passenger cars, and 10 lakh e-2 wheelers through demand incentives. Additionally, it supports the creation of charging infrastructure.