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India Accelerates EV Push and Critical Minerals Drive to Cut Oil Dependence

The Indian government is accelerating its electric vehicle push and domestic critical minerals capability to reduce reliance on oil imports. Key measures include extending the PM E-DRIVE subsidy scheme for two and three-wheelers and approving a ₹7,280 crore scheme to manufacture rare earth permanent magnets. These initiatives aim to strengthen the entire EV value chain, from demand-side incentives to localizing the supply of crucial components. The combined effort is designed to boost domestic manufacturing, shield consumers from global price volatility, and support India's clean energy and self-reliance goals.

Key Points: India Boosts EV, Critical Minerals to Reduce Oil Reliance

  • EV subsidy scheme extended
  • Rare earth magnet manufacturing push
  • Strengthening domestic supply chains
  • Aim to reduce oil import dependence
3 min read

Centre speeds up EV, critical minerals push to cut oil reliance​

Government extends EV subsidy scheme and launches rare earth magnet program to strengthen supply chains and cut import dependence amid global volatility.

"These measures will enhance the affordability, accessibility, and reliability of electric vehicles - Official Statement"

New Delhi, April 13

The government has accelerated the push for electric vehicles and strengthened domestic capabilities in critical minerals for clean energy technologies to reduce dependence on oil imports amid volatility in global prices and potential disruptions in supply chains due to the West Asia crisis, according to an official statement issued on Monday.​

Since the onset of the crisis, the Ministry of Heavy Industries has undertaken coordinated measures to sustain the growth of electric mobility and address supply chain vulnerabilities in electric vehicle components. ​

The Ministry has approved the extension of the ₹10,900 crore PM E-DRIVE Scheme to sustain the momentum of electric vehicle adoption and manufacturing.​

The e-2W segment has been extended by three months up to 31 July 2026, while the e-3W segment, including e-rickshaws and e-carts, has been extended by two years up to 31 March 2028, the statement explained.​

Policy support under the PM E-DRIVE Scheme has been streamlined to ensure continuity of incentives, boost electric vehicle adoption and promote domestic manufacturing.​

The Union Cabinet approved on 26 November 2025 the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) with an outlay of ₹7,280 crore. ​

The scheme targets the establishment of 6,000 MTPA integrated REPM manufacturing capacity in India and aims to promote domestic manufacturing of sintered REPM, strengthen supply chains for the electric vehicle, defence, and aerospace sectors, and support the Aatmanirbhar Bharat and Net Zero 2070 goals.​

Steps are being taken to operationalise the REPM scheme to progressively enhance localisation of electric vehicle components. Continuous engagement is being maintained with OEMs, component manufacturers and industry stakeholders to strengthen supply chain resilience.​

As part of the implementation, a pre-bid conference was held on 7 April 2026 with participation from 25 leading companies and the Request for Proposal was issued on 20 March 2026. The bidding process is being conducted through a transparent two-cover Least Cost Selection system on the CPP Portal.​

These measures are supported by the ongoing Phased Manufacturing Programme to increase domestic value addition in electric vehicle manufacturing. ​

The combined implementation of PM E-DRIVE, REPM and Phased Manufacturing Programme schemes is expected to strengthen the entire electric vehicle value chain.​

PM E-DRIVE provides demand-side support and policy certainty to OEMs, enabling them to scale production and accelerate electric vehicle adoption. ​

The REPM scheme addresses supply-side constraints by promoting domestic manufacturing of critical rare earth-based components.​

The Phased Manufacturing Programme enables phased localisation and reduces import dependence across electric vehicle sub-systems. These initiatives will benefit manufacturers, MSMEs and component suppliers through increased domestic value addition, supply chain stability and investment opportunities.​

For citizens, these measures will enhance the affordability, accessibility, and reliability of electric vehicles, while reducing dependence on imported fuels and components, which will help shield consumers from global price volatility, the statement added.​

- IANS

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Reader Comments

P
Priya S
Good policy, but execution is key. We need more charging stations, especially in smaller cities and along highways. Also, what about the battery disposal plan? Green energy shouldn't create a new waste problem. Hope the government has a roadmap for that too.
R
Rohit P
As someone in the auto components business, this gives much-needed clarity. The 3-year extension for e-2W and longer for e-3W helps us plan investments. The REPM scheme for rare earth magnets is vital—we've been too dependent on China for these. Jai Hind!
S
Sarah B
The focus on e-rickshaws and e-carts is so important for last-mile connectivity and reducing urban pollution. My auto-wallah in Delhi just switched to electric and says his running cost is down by 70%. More incentives for these small entrepreneurs please!
V
Vikram M
₹10,900 crore for E-DRIVE and ₹7,280 crore for REPM... that's serious money. Hope the "transparent two-cover" bidding process is truly transparent. We've seen good schemes get diluted by corruption before. Fingers crossed this time it works for the nation.
K
Kavya N
Net Zero 2070 is a long way off, but these are the right steps today. Reducing oil imports means our rupee gets stronger. Every time petrol prices go up, my household budget gets hit. If EVs become truly affordable, it will be a big relief. 🤞

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