The Ministry of Heavy Industries told the Lok Sabha on July 28, 2026, that no National Electric Vehicle Policy or National Framework was under consideration, in response to a question on the varying electric vehicle (EV) incentive structures adopted by different states.
Bhupathiraju Srinivasa Varma, Minister of State for Heavy Industries, was responding to an unstarred question raised by Chandan Chauhan, who had asked whether the Centre planned to formulate a uniform national policy covering EV standards, charging infrastructure, battery recycling, safety norms and incentives across states. The Minister said questions relating to consultations with state governments and industry, and provisions for indigenous manufacturing under such a policy, did not arise since no such framework was being considered.
Varma said the government was instead relying on a set of existing schemes to build a coordinated EV ecosystem. The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II, implemented over five years from April 1, 2019 to March 31, 2024 with budgetary support of Rs 11,500 crore, had supported the sale of about 16.72 lakh electric two-wheelers, three-wheelers and four-wheelers, besides the deployment of 5,197 electric buses as on June 30, 2026, he said.
The Minister also cited the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry, notified on September 23, 2021 with an outlay of Rs 25,938 crore to boost domestic manufacturing of advanced automotive technology products including EVs, and a separate PLI scheme for Advanced Chemistry Cell (ACC) battery storage, notified on June 9, 2021 with an outlay of Rs 18,100 crore, aimed at building a 50 GWh domestic battery manufacturing base.
Under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, notified on September 29, 2024 with an outlay of Rs 10,900 crore, the government was supporting incentives for about 28.30 lakh EVs, including electric trucks, buses and ambulances, Varma said. Of Rs 4,391 crore allocated for 14,028 e-buses under the scheme, 13,800 had been allocated across seven cities with population above four million, namely Delhi, Bengaluru, Hyderabad, Mumbai, Ahmedabad, Pune and Surat, with 200 more approved for Jammu and Kashmir.
The Minister further pointed to the PM e-Bus Sewa-Payment Security Mechanism Scheme, notified on October 28, 2024 with an outlay of Rs 3,435.33 crore to support deployment of more than 38,000 electric buses and protect operators against payment default by transport authorities, and the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India, notified on March 15, 2024, which requires a minimum investment of Rs 4,150 crore and domestic value addition of 25 per cent by the third year, rising to 50 per cent by the fifth year.
Additional measures cited included a reduction in Goods and Services Tax on EVs and charging equipment to 5 per cent, the issuance of green licence plates and permit exemptions for battery-operated vehicles by the Ministry of Road Transport and Highways, and an advisory to states to waive road tax on EVs to lower upfront costs.
