EV policy goes beyond purchase incentives, lays structural roadmap for clean mobility: Centre
New Delhi, July 28
The Centre on Tuesday said its electric vehicle policy extends well beyond purchase incentives by combining demand-side support with structural reforms aimed at strengthening domestic manufacturing, technology adoption and institutional capacity to accelerate the country's transition to clean mobility.
In a written reply to a question in the Lok Sabha, Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma said, "While demand-side schemes like FAME-II and PM E-DRIVE focus on reducing upfront costs, the institutional framework is strengthened through supply-side Production Linked Incentive (PLI) schemes for the Automobile and Advanced Chemistry Cell (ACC) sectors, which mandate high technology adoption and Domestic Value Addition (DVA)."
The Minister added that "the Phased Manufacturing Programme (PMP) establishes a structural roadmap for indigenisation by requiring the domestic manufacturing of critical EV components over time."
The government said the transition to electric mobility is being backed by significant public spending on both market creation and manufacturing capacity.
According to the reply, the FAME-II scheme concluded with a total outlay of Rs 11,500 crore, while its successor, the PM E-DRIVE scheme, has been launched with an allocation of Rs 10,900 crore.
On the manufacturing side, the PLI Scheme for Automobile and Auto Components has a budgetary outlay of Rs 25,938 crore, while the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage carries an allocation of Rs 18,100 crore.
Responding to whether the new policy framework is more comprehensive, the Minister said, "Yes, the new policies are comprehensive. They address demand as well as supply side of manufacturing of EVs."
The government, however, clarified that it has not fixed any specific target for the number of electric vehicles on Indian roads by 2047.
The reply said EV adoption is being promoted through multiple central schemes, including FAME India Phase-II, PM E-DRIVE, the PLI schemes for automobiles and ACC batteries, the PM e-Bus Sewa-Payment Security Mechanism (PSM) with an outlay of Rs 3,435.33 crore, and the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI).
The Centre further informed Parliament that several states, have notified dedicated EV policies to complement central initiatives. However, since the Ministry of Heavy Industries' schemes are demand-driven, no state-wise allocation of funds is made, the reply added.
— ANI
Reader Comments
Rs 10,900 crore for PM E-DRIVE is a big number but I hope it reaches the common consumer, not just rich folks buying luxury EVs. The phased manufacturing plan sounds promising for making affordable parts here. My main worry is the charging infrastructure in tier-2 cities and rural areas—without that, no scheme will work. Please focus on that too!
Interesting approach from the Indian government. Combining demand subsidies with supply-side PLI and a phased manufacturing program is more strategic than just throwing money at consumers. If India can build its own battery and motor ecosystem, it will reduce import dependence on China. That's smart economics. Hope the states coordinate well with the Centre on implementation.
No fixed target for EVs by 2047? That's a bit surprising. Other countries have clear goals, like banning ICE vehicles by 2035. India should set a target to push industry and consumers. Still, Rs 68,000+ crore total across these schemes is serious money. Let's see if battery tech improves and costs come down. For now, even a basic e-scooter is too pricey for many. 🛵⚡
The Phased Manufacturing Programme (PMP) is the most interesting part. Forcing domestic value addition over time can build a real supply chain. But here's my respectful criticism: the PLI for ACC batteries (Rs 18,100 crore) needs to focus on actual production, not just assembly. Right now most battery packs are imported. The minister's reply is good on paper, but we need transparent tracking of DVA targets.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.