Ministry of Heavy Industries
SUBSIDY FOR PROMOTING E-VEHICLES
Posted On:
04 APR 2025 5:21PM by PIB Delhi
Yes, the Government is providing subsidies to promote e-vehicles to enhances sales and reduce pollution. These subsidies are primarily offered to buyers of e-vehicles to make EVs more affordable. The following schemes are being implemented by Ministry of Heavy Industries (MHI) to provide subsidies to promote e-vehicles :-
- PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme: This scheme with an outlay of Rs.10,900 crore has been notified on 29.09.2024. It is a two-year scheme ending on 31/03/2026. The subsidy is being provided to EVs including e-2Ws under the PM E-DRIVE Scheme. The details of subsidy are provided at Annexure.
- Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-Auto): The Government approved this scheme on 15.09.2021 for Automobile and Auto Component Industry for enhancing India's manufacturingcapabilities for Advanced Automotive Technology (AAT) products. The budgetary outlay of the scheme is Rs.25,938 crore. The scheme provides financial incentives to boost domestic manufacturing of EVs, including cars.
- PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage: The Government on 12.05.2021 approved PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage for manufacturing of ACCin the country with a budgetary outlay of Rs.18,100 crore. The scheme is important, as battery is an integral component for EVs including cars and scooters.
Besides this, many of the State Governments are providing subsidy for purchase of EVs.
As per information received from Ministry of Power (MoP), record of EV charging stations installed in the offices is not maintained by the MoP.
Additionally, the Ministry of Power issued the Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure-2024 in September 2024. These guidelines include the following suggestions to facilitate the setup of charging stations in office complexes:
- Building/office owners can request a separate metered connection from the distribution licensee or use their existing electricity connections to charge employees' EVs at the workplace.
- Building/office owners can apply to their electricity distribution licensee for a higher power load to accommodate EV charging stations.
Details of subsidy being offered to e-2W buyers under the PM E-DRIVE scheme
S. No
|
Segment of Vehicle
|
Incentive per kWh
|
Cap
|
Period
|
1
|
e-2W
|
Rs.5,000/-
|
15% of ex-factory price
|
FY 2024-25
|
2
|
e-2W
|
Rs.2,500/-
|
FY 2025-26
|
The upper cap in the subsidy is restricted to EVs with an ex-factory price below a certain threshold defined in the PM E-DRIVE scheme.
This information was given by the Minister of State for Steel and Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Rajya Sabha today.
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