Key Takeaways ✨
India’s transition to electric mobility is not just about reducing carbon emissions — it’s a strategic move to curb fuel imports, improve air quality, and become a global leader in EV technology. To make this happen, the Government of India has rolled out several electric vehicle policies that provide financial incentives, tax benefits, infrastructure support, and ease of doing business for EV manufacturers, fleet operators, charging companies, and startups.
If you’re planning to enter the EV industry — whether it’s two-wheelers, charging stations, battery swapping, or electric logistics — understanding these government initiatives can help you plan and grow faster.
Let’s break it down in simple terms.
1. National Electric Mobility Mission Plan (NEMMP)
Launched: 2013 | Target Year: 2020 (continued through later policies)
The NEMMP was the first major EV policy in India aimed at creating a roadmap for electric and hybrid mobility.
Key Highlights:
- ₹14,000 crore outlay planned to promote electric and hybrid vehicles
- Aimed to achieve national fuel security by promoting EV adoption
- Focused on R&D, manufacturing, and demand generation
- Led to the birth of FAME India Scheme
2. Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME India Scheme)
Phase 1: 2015–2019 | Phase 2: 2019–March 2024 (Extended)
This is India’s flagship scheme for EV promotion under the Ministry of Heavy Industries.
FAME II Scheme Overview:
- Total outlay: ₹10,000 crore
- Focus on electric 2-wheelers, 3-wheelers, 4-wheelers, buses
- Direct subsidies on vehicles (based on battery size ₹15,000/kWh for 2Ws)
- Focus on public transportation & commercial vehicles
- Support for charging infrastructure in urban areas
Beneficiaries:
- EV Manufacturers
- Fleet Operators (like Ola, Uber, delivery services)
- Public Transport Agencies
- Private EV Buyers (mostly 2Ws and 3Ws)
3. Production Linked Incentive (PLI) Schemes for EV Sector
Launched: 2021–2022 | Managed by: Ministry of Heavy Industries
India has introduced two critical PLI schemes aimed at EVs:
a) PLI Scheme for Automobile and Auto Components
- Outlay: ₹25,938 crore
- Incentives for companies manufacturing electric vehicles and advanced auto components
- Focus on local value addition, job creation, and export competitiveness
b) PLI for Advanced Chemistry Cell (ACC) Battery Storage
- Outlay: ₹18,100 crore
- Boosting domestic manufacturing of Li-ion batteries
- Key for EV battery packs, swapping infrastructure, and cost reduction
These PLIs aim to make India self-reliant in EV supply chain and technology.
4. State-Level EV Policies in India
Many Indian states have their own custom EV policies aligned with the national mission.
Common Incentives Across States:
- Purchase subsidies per kWh of battery capacity
- Scrappage incentives for old petrol/diesel vehicles
- Road tax exemption (100% in most states)
- Registration fee waiver
- Capital subsidies for setting up charging stations
- Electricity tariff discounts for EV charging businesses
Best Performing States with EV Policies:
- Delhi: 25% subsidy on e-bikes, scrappage benefits, dedicated EV cell
- Maharashtra: ₹10,000 subsidy per EV, early-bird incentives
- Tamil Nadu: 100% road tax exemption, support for EV clusters
- Gujarat: Subsidies for 2Ws, 3Ws, e-cars; EV component hubs
- Karnataka: Pioneer in EV policy; offers battery parks, land support
- Telangana & Andhra Pradesh: Focus on EV manufacturing hubs
5. Battery Swapping Policy (Draft by NITI Aayog)
Recognizing the challenge of charging time, the government introduced a Battery Swapping Policy for interoperability and quick turnaround for fleet vehicles.
Policy Highlights:
- Standardization of battery packs & connectors
- Encouragement of Battery-as-a-Service (BaaS) model
- Benefits for last-mile delivery companies, e-rickshaws, and 3Ws
- Private players like Sun Mobility, BatterySmart welcomed
This policy opens up a whole new business segment in EV infrastructure.
6. Charging Infrastructure Guidelines (MoP)
The Ministry of Power (MoP) has created detailed charging infrastructure guidelines to promote the growth of public and private EV chargers.
Key Provisions:
- No license required for EV charging station setup
- DISCOMs must provide connections in 7 days (urban) / 15 days (rural)
- Single-window clearances via online portals
- Time-of-Day tariffs for public chargers (cheaper during off-peak)
- Public charging station every 3 km in cities, every 25 km on highways
Key Focus:
- Public Private Partnership (PPP) model
- City-wide master planning by ULBs and state agencies
- Charging infra for housing societies, malls, offices, parking lots
7. EV Business & Startup Opportunities Supported by Policy
If you’re planning to start an EV-related business, government policy is already enabling the following areas:
Business Ideas Backed by Policy:
- EV Dealerships & Distribution
- Battery swapping stations
- Home charging installation services
- EV leasing & financing
- Fleet electrification (cargo/logistics)
- EV aggregators (e-bikes, 3W delivery)
- Smart charging software & billing
- EV retrofitting kits for old scooters and cars
Many of these are eligible for subsidies, soft loans, and state incentives.
8. GST and Tax Benefits for EV Businesses
The government has aligned the taxation policy to support EV adoption and manufacturing:
Key Tax Benefits:
- GST on EVs reduced to 5% (compared to 28% on petrol/diesel)
- GST on charging equipment is 5%
- Income tax deduction up to ₹1.5 lakh on interest for EV loans under Section 80EEB (for individuals)
- EV startups can apply for tax holiday under Startup India norms
These tax benefits lower the overall cost of ownership and operations, making it easier to scale.
9. Green Energy Integration with EV Policies
To promote clean charging, the government is integrating solar, wind, and bio-energy policies into the EV ecosystem.
Renewable Synergy Support:
- EV charging stations allowed to install solar panels
- Net metering allowed for home chargers
- Dedicated solar park zones for EV charging corridors
- States like Gujarat, Rajasthan promoting solar EV hubs
Green charging is expected to be a big trend in 2025–2030 as more consumers seek zero-emission lifestyle solutions.
10. Institutional Support and EV Cells
Multiple departments are working in sync to build India’s EV future.
Key Institutions Supporting EV Policy:
- NITI Aayog – Policy think tank & roadmap creator
- Ministry of Heavy Industries (MHI) – Core EV schemes (FAME, PLI)
- Ministry of Power (MoP) – Charging infra & power distribution
- Bureau of Energy Efficiency (BEE) – Urban EV implementation cell
- State Transport Departments – Registration and subsidy management
- State Nodal Agencies – EV portals, business facilitation
11. Startup India & Make in India Incentives
Startups working on EV technology, battery innovation, software platforms, and logistics electrification can register under Startup India.
Advantages:
- Access to seed funding
- Relaxed public procurement norms
- Tax holidays
- Patent & IP support
Under Make in India, there’s a major push to localize motor controllers, power electronics, and battery packs — all of which are business opportunities.
12. Future Roadmap: What to Expect in 2025–2030
Here’s what is expected from the government in the next 5 years:
- FAME III Policy with a focus on private 4-wheelers and commercial fleet scaling
- Mandating EV-only sales by certain timelines (under discussion)
- Nationwide charging station mapping via apps
- Integrated EV policy that combines mobility + energy + digital ecosystem
- Focus on indigenous battery chemistries like Sodium-ion and Solid-State
- Launch of EV finance platforms for easy loans and leasing
Conclusion: Policy is the Foundation of India’s EV Revolution
India’s EV ecosystem is growing rapidly, and government policy is not just support — it’s a full-blown ecosystem catalyst. Whether you’re an entrepreneur, an OEM, a service provider, or a young startup, these policies can fuel your growth with the right roadmap and incentives.
From central subsidies to state-specific grants, and from PLI schemes to renewable integration — the Indian government is laying the groundwork for an EV-first future.
