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Indian Government's Initiatives Boost Domestic Manufacturing and Electrification Drive

Under FAME India Phase II, subsidies amounting to INR 5283 crores have been granted to electric vehicle manufacturers.

December 13, 2023. By Abha Rustagi

In a bid to position India as a global supplier base for Original Equipment Makers (OEMs), the Ministry of Heavy Industries (MHI) has undertaken significant measures.

In the Production Linked Incentive (PLI) Scheme for ACC battery storage the government approved the 'National Programme on Advanced Chemistry Cells (ACC) Battery Storage' on May 12, 2021, with a budgetary outlay of INR 18,100 crores. The scheme aims to establish a cumulative ACC battery manufacturing capacity of 50 GWh, fostering manufacturing growth.

With a budget of INR 25,938 crores, the PLI Scheme for Automobile and Auto Component Industry provides financial incentives to boost domestic manufacturing of Advanced Automotive Technologies (AAT) products, including electric vehicles and their components.

The Faster Adoption and Manufacturing of Electric Vehicles in India Phase II, running from April 1, 2019, for five years with a budget of INR 10,000 crores, focuses on supporting the electrification of public and shared transportation. It aims to incentivize 7090 e-buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars, and 10 lakh e-2 Wheelers. The scheme also supports the creation of charging infrastructure.

Under FAME India Phase II, subsidies amounting to INR 5283 crores have been granted to electric vehicle manufacturers, incentivizing the sale of 11,75,888 EVs as of December 8, 2023.

Additionally, MHI sanctioned 6862 electric buses for intra-city operations, with 3487 buses already supplied to State Transport Undertakings (STUs) by November 29, 2023, supported by grants of INR 1248 crores.

Furthermore, MHI has allocated INR 800 crores as capital subsidy to three Oil Marketing Companies (OMCs) of the Ministry of Petroleum and Natural Gas for the establishment of 7,432 EV public charging stations.

These initiatives were disclosed by the Minister of State for Heavy Industries, Krishan Pal Gurjar, in a written reply in Lok Sabha.

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Policies & Regulations

Ministry of Heavy Industries

OEM

Original equipment manufacturer

FAME India Phase II Scheme