Govt Clarifies EV Charging Infrastructure Incentives, Ongoing Schemes to Promote EV Manufacturing

Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma has issued written replies to questions raised in the Rajya Sabha on Friday about the state of EV charging infrastructure in India, and steps being taken to encourage EV adoption. The information released contains details of funds disbursed and guidelines established under the PM E-Drive Scheme and Production-Linked Incentive Schemes for automotive component and battery manufacturing, among other initiatives.

According to official data, 39,485 EV chargers are currently installed across India, of which 8,414 are fast chargers. The ministry has clarified that setting up a vehicle charging point does not require a licence, and private entities may also establish such facilities. 

₹2,000 crore has been allocated under the PM E-Drive Scheme to set up public EV charging stations. Electric bus procurement is also continuing, with competitive bidding undertaken by Convergence Energy Services Limited (CESL). 10,900 e-buses were allocated to five cities in the first phase, and the bids for selection of operators for them were opened on November 14 this year. An additional 2,900 e-buses have been allocated in the second phase. 

Government of India Ministries, Central Public Sector Enterprises, autonomous bodies under GoI Ministries, States/Union Territories, and their PSUs, are eligible to receive subsidy funding to set up EV chargers under the PM E-Drive Scheme. 

Any charger set up by a government agency on its own premises must be accessible to the public, and can receive a 100 percent subsidy on infrastructure and equipment. Chargers set up along highways controlled by state or central governments or their PSUs, and at railway stations, AAI airports, state transport bus stations, metro stations, municipal parking areas, etc, can get an 80 percent subsidy on infrastructure and 70 percent on equipment. For all other locations including private property, shopping malls, etc, there is only an 80 percent infrastructure subsidy. All battery swapping and charging stations also get only an 80 percent infrastructure subsidy. 

The minister’s written reply named five government incentive schemes currently in effect, and outlined their current status:

• The PLI Scheme for Automobile and Auto Component Industry in India (PLI-Auto), 2021, improves India's manufacturing capabilities for advanced automotive products including EVs, with a budget of ₹25,938 crore.
• The PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage was also notified in 2021 with a budget of ₹18,100 crore, to help establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries.
• The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) Scheme has a budget of ₹10,900 crore, of which ₹2,000 crore is specifically allocated to setting up public EV charging infrastructure. Notified in 2024, this scheme supports EVs including two-wheelers, three-wheelers, trucks, buses, and ambulances, along with provisions to upgrade testing agencies. 
• The PM e-Bus Sewa - Payment Security Mechanism (PSM) Scheme from 2024 has a budget of ₹3,435.33 crore to support the deployment of more than 38,000 electric buses by providing payment security to e-bus operators in case of default by Public Transport Authorities (PTAs).
• The Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI), 2024, promotes the manufacturing of electric cars in India. Applicants must invest a minimum of ₹4,150 crore and achieve a minimum domestic value addition of 25 percent at the end of the third year, rising to 50 percent at the end of the fifth year.