Blitz Bureau
INDIA is also advancing in sustainable mobility, with 4.4 million electric vehicles (EV) registered by August 2024, including 9.5 lakh in the first eight months of 2024, achieving a 6.6 per cent market penetration. To support this growth, the Government has implemented initiatives such as the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) battery storage.
In the 2024-25 Budget, the Government allocated Rs 2,671.33 crore under the FAME scheme and proposed the exemption of customs duties from the import of critical minerals required for EV cell components manufacturing.
Additionally, in March 2024, the Electric Mobility Promotion Scheme (EMPS) was launched with an Rs 500 crore outlay for four months, specifically targeting support for the two and three-wheeler segments to expedite the transition to electric vehicles.
These initiatives align with the recent discovery of lithium deposits in Jammu & Kashmir, positioning India to become a key player in the global battery manufacturing industry in the coming years. The Indian EV sector is likewise developing quickly and is predicted to record a growth of $113.99 billion in 2029.
The Ministry of Heavy Industries has formulated various schemes to promote electric vehicles and to address the various challenges faced in adoption of electric mobility: Schemes for EVs FAME India Phase-II: The Government implemented the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme for a period of five years from April 1, 2019 with a total budgetary support of Rs 11,500 crore. The scheme incentivised e-2Ws, e-3Ws, e-4Ws, ebuses and EV public charging stations.
PLI-Auto Scheme: The Government notified the Production Linked Incentive Scheme for Automobile and Auto Component Industry on September 23, 2021 for enhancing manufacturing capabilities for advanced automotive technology (AAT) products with a budgetary outlay of Rs 25,938 crore. The scheme proposes financial incentives to boost domestic manufacturing of AAT products with minimum 50 pc Domestic Value Addition (DVA) and attract investments in the automotive manufacturing value chain.
PLI Scheme for ACC: The Government on May 12, 2021 approved PLI Scheme for manufacturing of ACC in the country with a budgetary outlay of Rs 18,100 crore. It aims to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries.
PM E-DRIVE Scheme: The PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme, notified on September 29, 2024, is a two-year scheme which aims to support electric vehicles, including e-2W, e-3W, e-trucks, e-buses, e-ambulances and EV public charging stations.
PSM Scheme: The PM e-Bus Sewa-Payment Security Mechanism Scheme, notified on October 28, 2024, has an outlay of Rs 3,435.33 crore and aims to support deployment of more than 38,000 electric buses. The objective of scheme is to provide payment security to e-bus operators in case of default by public transport authorities.
SMEC scheme: The Scheme for Promotion of Manufacturing of Electric Passenger Cars in India was notified on March 15, 2024 to promote the manufacturing of electric cars in the country.
Revised guidelines
Besides, the Ministry of Power issued guidelines and standards for EV charging infrastructure September 17, 2024. These revised guidelines outline standards and protocols to create a connected and interoperable EV charging infrastructure network in the country. The Ministry of Finance reduced GST on EVs from 12 per cent to 5 per cent. Also, the Ministry of Road Transport & Highways announced that the battery-operated vehicles will be given green plates and be exempted from permit requirements.
The Ministry of Housing and Urban Affairs amended the Model Building Bye-Laws, mandating the inclusion of charging stations in private and commercial buildings.
