The government implemented the faster adoption and manufacturing of hybrid and electric vehicles in India (FAME India) scheme phase-II for five years from April 1, 2019 to March 31, 2024 with a total budgetary support of ₹11,500 crore. The scheme provided demand incentive for e-2Ws, e-3Ws, e-4Ws and grants for e-buses and setting up of EV public charging stations (EV PCS). FAME-II has supported the sale of approximately 16.72 lakh electric vehicles, including e-2Ws, e-3Ws, and e-4Ws. In addition, 5,299 electric buses (e-buses) have been deployed under the scheme as of July 31, 2026. Further, an amount of ₹912.50 crore was allocated under the scheme for the establishment of EVPCS across the country, and 9,583 EV PCS have been installed under this scheme, the Ministry of Heavy Industries said.
It notified Production Linked Incentive (PLI) scheme for Automobile and Auto Component Industry in India (PLI-Auto) for automobile and auto component industry in India, on September 23, 2021, for enhancing India's manufacturing capabilities for Advanced Automotive Technology (AAT) products, including EVs, with a budgetary outlay of ₹25,938 crore, the ministry added.
The centre on June 9, 2021 notified Production Linked Incentive (PLI) scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage with a budgetary outlay of ₹18,100 crore. The scheme aims to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries, out of which, 40 GWh has been awarded to four beneficiary firms. The 40 GWh capacity is end-use agnostic and can be utilized for any application including electric vehicles.
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme with an outlay of ₹10,900 crore has been notified on September 29, 2024. This scheme supports incentivization of approximately 28.30 lakh electric vehicles (EVs) including e-2W, e-3W, e-Trucks, e-buses and e-Ambulances. Further, grant for upgradation of testing agencies is also available under this scheme. An allocation of ₹4,391 crore has been made under the scheme for deployment of 14,028 e-buses out of which 14,000 e-buses have been allocated. ₹2,000 crore has been allocated for deployment of EV PCS on pan India basis. Phased Manufacturing Programme (PMP)Mandates the domestic manufacturing of EV components, including battery packs, in a phased manner.
The PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme notified on October 28, 2024, has an outlay of ₹3,435.33 crore and aims to support deployment of more than 38,000 electric buses. The objective of this scheme is to provide payment security to e-bus operators in case of default by Public Transport Authorities (PTA).
As on July 10, 2026, the PM-eBusSewa – Payment Security Mechanism (PSM) Scheme covers 27,555 e-buses. Of these, 10,000 e-buses are under the PM-eBusSewa Scheme of the Ministry of Housing and Urban Affairs (MoHUA), 14,000 e-buses are under the PM E-DRIVE Scheme of the Ministry of Heavy Industries (MHI), and 3,555 e-buses under various State Government/State Transport Undertaking (STU) initiatives.
