Lok Sabha Question No. 2637 (UNSTARRED), answered on 2025-08-05
Subject: Initiatives to improve EV Sector
Ministry: HEAVY INDUSTRIES
Asked by: Dr. Nishikant Dubey

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2637

ANSWERED ON 05.08.2025

## INITIATIVES TO IMPROVE EV SECTOR

## 2637.   DR. NISHIKANT DUBEY:

## Will the Minister of HEAVY INDUSTRIES be pleased to state:

- (a) the details of initiatives taken to improve Electric Vehicle (EV) infrastructure in the country;
- (b)  whether  the  Government  is  adopting  new  technologies  and  spending  on  Research  and Development (R&D) related to EV; and
- (c) if so, the details thereof?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

- (a) The  Government  has  launched  following  schemes  to  improve  Electric  Vehicle  (EV) infrastructure in the country: -
1. Faster  Adoption  and  Manufacturing  of  (Hybrid  &)  Electric  Vehicles  in  India (FAME India) Scheme Phase-II : The Government implemented this scheme for a period of five years from 1st April, 2019 to 31 st March 2024 with a total budgetary support of Rs.11,500 crore.  The scheme provided demand incentive for e-2Ws, e-3Ws, e-4Ws and grant for e-buses and setting up of EV public charging stations (EV PCS).
2. PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme: This scheme with an outlay of Rs. 10,900 crore is being implemented from 1 st April 2024 to 31 st  March 2026.  PM E-DRIVE aims to support electric vehicles including e-2W, e3W, e-Trucks, e-buses, e-Ambulances, EV PCS and upgradation of testing agencies.
3. PLI Scheme for Advanced Chemistry Cell (ACC): The Government on 12 th  May, 2021 approved PLI Scheme for manufacturing of ACC in the country with a budgetary outlay of  Rs.  18,100  crore.  The  scheme  aims  to  establish  a  competitive  domestic  manufacturing ecosystem for 50 GWh of ACC batteries.
4. Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-Auto) : The Government approved this scheme on 23 rd September, 2021 with a budgetary outlay of ₹25,938 crore.  The scheme provides financial incentives to boost domestic manufacturing of Advanced Automotive Technology (AAT) products with minimum 50% Domestic Value Addition (DVA) and attract investments in the automotive manufacturing value chain.
5. Scheme  for  Promotion  of  Manufacturing  of  Electric  Passenger  Cars  in  India (SPMEPCI): The scheme was notified on 15 th  March, 2024 to promote the manufacturing of electric cars in India.  This requires applicants to invest a minimum of Rs. 4150 crore and to achieve a minimum DVA of 25% at the end of the third year and DVA of 50% at the end of the fifth year.

6. PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme : This Scheme notified on 28.10.2024, 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 (PTAs).

Besides above following initiatives have been taken by other Ministries :

- i.   Ministry of Power has issued guidelines and standards for EV Charging Infrastructure titled, "Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure-2024" on 17 th September, 2024.  These revised guidelines outline standards and protocols to create a connected and interoperable EV charging infrastructure network in  the  country.  These  guidelines  also  facilitate  electricity  connections  for  EV  charging stations.

ii.   Ministry of Finance has reduced GST on EVs from 12% to 5%.

iii. Ministry of Road Transport & Highways (MoRTH) announced that the battery operated vehicles will be given green plates and be exempted from permit requirements. MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of the EVs.

- iv. Ministry of Housing and Urban Affairs has amended the Model Building ByeLaws, mandating the inclusion of charging stations in private and commercial buildings.
2. (b) & (c): Yes, the Government is promoting new technologies and spending on Research and Development (R&D) related to EVs through the following :
1. The expenditure incurred on Engineering R&D and product design & development is allowed  to  be  considered  as  part  of  Eligible  Investment  under  PLI-Auto,  PLI  ACC  and SPMEPCI schemes.
2. Under  the  Capital  Goods  scheme  of  MHI,  up  to  80%  of  the  cost  of  R&D  projects including those on EVs is supported. These projects are housed in leading academic institutes like IITs, IISc., etc. The balance 20% is borne by the industry partners.
3. Centres  of  excellence  have  been  set  up  for  development  of  niche  technologies  not available in India, including technologies related to EVs.
4. An amount of Rs.780 crore is allocated under PM E-DRIVE for upgradation of testing agencies especially for EV related testing. This will also facilitate EV related R&D efforts of the automotive industry.
5. Further, the International Advanced Research Centre for Powder Metallurgy and New Materials (ARCI), Hyderabad, an autonomous R&D centre under Department of Science and Technology (DST), has developed several advanced battery technologies. These are as under : -
- I. Development of materials for Lithium  and  Sodium  ion  and  Lithium  Sulphur  (LiS) batteries; Fabrication and validation of cylindrical and pouch cells.
- i. Cobalt free High Voltage Cathode Materials (LiMnFePO4 & LiNi0.5Mn1.5O4 for High Energy Li-ion Battery Application
- ii. High Performance NVP, layered oxides as cathodes and Hard Carbon from Biowaste as anode for Na-ion Battery Applications
- iii. Metal oxide modified Carbon  Sulphur  composite  cathodes  for  high  performance  and stable Li-S batteries.

- II. Development  of  cost-effective  and  high-performance  composite  PCMS  for  battery thermal management systems in EV Applications.
- III. Development  of  Aluminium-ion  Battery  as  alternative  to  LIBs  in  EV  and  ESS applications
- IV. Development of Hybrid-models for accelerated service life predication of LIBs and other battery systems.
- V. Development of Eco-friendly process (wet & dry) for battery electrode fabrications
- VI. Developing a scalable method for tuning the internal pore structure and porosity of a metal or alloy for thermal energy absorption, storage, and conversion applications.

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