Where do the flagship schemes like PM E-DRIVE, PLI, and FAME stand this year, after two quarters? Lok Sabha gets a major update on Tuesday about India’s EV policy scenario.
The Government of India recently released some of the latest updates on its different initiatives to strengthen its electric vehicle (EV) ecosystem. Presented by the Minister of State for Steel and Heavy Industries (MHI), Bhupathiraju Srinivasa Varma, in the Lok Sabha on Tuesday, these include the flagship PM E-DRIVE Scheme, production-linked incentive (PLI) programmes, and the much-known Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME).
The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, launched in September 2024, has a total outlay of ₹109 billion for two years. It focuses on upfront subsidies to EV buyers, and has allocated ₹36.79 billion across key segments:
- ₹17.72 billion for 2.479 million electric two-wheelers (e-2Ws)
- ₹9.07 billion for 315,000 electric three-wheelers (e-3Ws)
- ₹5 billion for electric ambulances (number has not been disclosed)
- ₹5 billion for 5643 electric trucks
Additional allocations under the scheme include:
- ₹43.91 billion for 14,028 electric buses
- ₹20 billion for EV charging stations
- ₹7.8 billion for upgradation of testing agencies
The scheme mandates adherence to a Phased Manufacturing Programme (PMP) to ensure local value addition and encourage indigenised EV production.
Meanwhile, under the PLI Scheme for Automobiles and Auto Components, cumulative investments had reached ₹295.76 billion as of 31 March 2025, generating 44,987 jobs. By 16 July 2025, 106 Domestic Value Addition (DVA) certificates had been issued to approved applicants.
The scheme offers 13% to 18% incentives on incremental sales of advanced automotive technology (AAT) vehicles for Champion OEMs and 7.2% to 13% for AAT components. An extra 5% incentive is granted for battery EV components. A minimum of 50% domestic value addition (DVA) is mandatory to qualify.
Complementing this is the PLI Advance Chemistry Cell (ACC) scheme, which incentivises local production of battery cells—a critical component in EV manufacturing.
Initiated in 2015 under the National Electric Mobility Mission Plan (NEMMP) 2020, the FAME scheme has completed two phases.
As of 30 June 2025, the second phase or FAME-II (2019–2024) supported:
- 1,435,065 e-2Ws
- 165,029 e-3Ws
- 22,644 e-4Ws
- 5165 e-buses (with 6862 committed)
Total support was extended to over 1.629 million EVs. Furthermore, ₹9.125 billion was sanctioned for 9332 public charging stations (PCS), with 8885 PCS installed by June 2025.
State-wise data shows that Maharashtra and Karnataka lead with over 181,000 and 143,000 EVs sold, respectively, during FY 2023–24. Smaller states, such as Sikkim, Nagaland, and Lakshadweep, registered minimal EV sales.
District-level data from Etah, Etawah, and Kasganj in Uttar Pradesh show a combined sale of 553 EVs over FY 2023–24 and 2024–25, with 46 charging stations installed in these districts.
Clarifying a common misconception, the ministry also stated that under the FAME Scheme, subsidies are not directly given to manufacturers, but instead deducted from the buyer’s upfront cost and later reimbursed to OEMs. The scheme has no urban-rural bias and applies across India.
A press release of the MHI noted, “Our goal is not just EV adoption but also the creation of a robust domestic supply chain, from battery production to final vehicle assembly.”
