The ministry has formulated three schemes for providing facilities and incentives to the EV manufacturing industry
In 2021, the Indian government had approved the Production Linked Incentives (PLI) scheme for manufacturing advanced chemistry cell (ACC) batteries with an outlay of INR 18,100 Cr
The Maharashtra Government has also announced that it will create an EV-focused fund to help EV startups to scale operations
Although the Indian government has taken up many initiatives to promote the adoption of electric vehicles (EVs), the government does not have any plans yet of establishing the EV manufacturing industry, the Ministry of Heavy Industries informed Lok Sabha on Tuesday.
“There is no such proposal under the consideration of the Ministry of Heavy Industries to establish the Electric Vehicles (EVs) Manufacturing Industry,” the ministry said.
However, the ministry noted that it already formulated three schemes for providing facilities and incentives to the EV manufacturing industry. In 2021, the Indian government had approved the Production Linked Incentives (PLI) scheme for manufacturing advanced chemistry cell (ACC) batteries with an outlay of INR 18,100 Cr.
Moreover, the government also approved the PLI Scheme for the automotive sector with a budgetary outlay of INR 25,938 Cr last September, while EVs are covered under this PLI scheme.
“The government notified Phase-II of FAME India Scheme initially for a period of three years commencing from 1st April, 2019 with total budgetary support of Rs. 10,000 crore. The Scheme was extended for a further period of two years up to 31st March 2024,” the ministry added.
For faster adoption of EVs, the state governments are also announcing several schemes. Recently, the Maharashtra Government has also announced that it will create an EV-focused fund to help EV startups to scale operations. In July 2021, Maharashtra rolled out a comprehensive EV policy in a bid to accelerate the adoption of EVs.
Back in July 2021, the Delhi Government also said it is looking to fully transition to electric vehicles for government use within the next 25 years. At that time, the Aam Aadmi Party-led government also revealed its plan to increase the number of charging stations for electric vehicles from 72 to 500.
The EV market in India is expected to touch $150 Bn by 2030, growing at a compounded annual growth rate (CAGR) of 90%, a report by consulting firm RBSA Advisors said in December last year. In addition, EV sales accounted for barely 1.3% of total vehicle sales in India during 20-21, the report stated.
Ola Electric, one of the leading players in the segment, raised $200 Mn in January from Tekne Private Ventures, Alpine Opportunity Fund, Edelweiss, and others at a valuation of $5 Bn. A few days ago, reportedly, Tata Motors also received the first tranche of investment of INR 3500 Cr from TGP Rise for its EV subsidiary.