National level Policy

To assist the acceptance of electric vehicles (EVs) in the country, the central government has announced a number of promotional measures in the previous ten years, including tax incentives for electric vehicle owners, public EV charging infrastructure development, and so on.

Timeline for various initiatives taken by policymakers and regulators:

1.Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) – I and II:

FAME, or Faster Adoption and Manufacturing of (Hybrid and) Electric vehicles, is currently India’s flagship scheme for promoting electric mobility. It was launched by DHI in 2015. Currently in its 2nd phase of implementation, FAME-II is being implemented for a period of 3 years, eff. 1st April 2019 with a budget allocation of 10,000 Cr which includes a spillover from FAME-I of Rs 366 Cr. The incentives offered in the scheme are:

S.No Total Approximate Incentives Approximate Size of Battery
1 Two Wheeler: Rs 15000/- per kWh upto 40% of the cost of vehicles Two Wheeler: 2 kWh
2 Three Wheeler: Rs 10000/- per kWh Three Wheeler: 5 kWh
3 Four Wheeler : Rs 10000/- per kWh Four Wheeler: 15 kWh
4 E Buses: Rs 20000/- per kWh E Buses: 250 kWh
5 E Trucks: Rs 20000/- per kWh

The Department of Heavy Industries has also sanctioned 2636 charging stations in 62 cities across 24 States/UTs under FAME India scheme phase II. State-wise allocation of these charging stations is as follows:

Phased Manufacturing Programme (PMP)

To boost electric mobility and promote development of electric vehicles, a phased manufacturing roadmap has been developed, taking into account the current state of the manufacturing ecosystem in the country, in which indigenous manufacturing of electric vehicles, their assemblies/sub-assemblies, and parts/sub-parts/inputs of the sub-assemblies will be promoted over time through a graded duty structure. The goal is to significantly boost value addition and capacity building in the country.

The following Phased Manufacturing Programme (PMP) is notified:

S.No. Item Description Current BCD w.e.f. 30/01/2019 Phased Manufacturine proposal
Proposed BCD Proposed Date of PMP
1 CBU Bus (HS 8702) & Trucks (HS 8704) 25% 50% April 2020 onwards
2 SKD PV(HS 8703) & 3W (HS 8703/8704) 15% 30%
2W(HS 8711) 25%
Bus(HS 8702) 25%
Truck(HS 8702) 25%
3 CKD Bus(HS 8704) 10% 15%
PV (HS 8703) 2W (HS 8711) 3W(HS 8703/8704)& Truck (HS 8704)
4 Lithlum lon cells (HS 85076000) for use in the manufacture of Lithium ion accumulator for electric vehicles 5% 15% April 2021 onwards
5 Battery packs (HS 8507) for use in the manufacture of electric vehicleS 5% 15%

Parts for use in the manufacture of electric vehicles like

  • AC or DC Charger
  • AC or DC Motor
  • AC or DC Motor Controller
  • Power Control Unit (Inverter, AC/DC Converter, Condenser)
  • Energy Monitor
  • Contactor
  • Brake System for recovering
  • Electric Compressor
0% 15% April 2021 onwards

To find out more about the benefits you can avail from FAME-II click below.

Faster adoption and manufacturing of (hybrid and) electric vehicles-II (fame-II) 🡪

2.National Mission on Transformative Mobility and Storage:

The aim of the mission is to drive strategies for transformative mobility and Phased Manufacturing Programmes for electric vehicles, electric vehicle Components and Batteries. Following are the key roles, roadmap and anticipated impact envisaged under the mission:


  • Drive strategies for transformative mobility and Phased Manufacturing Programmes for electric vehicles, electric vehicle Components and Batteries
  • Creating a Phased Manufacturing Program (PMP) to localize production across the entire electric vehicle value chain
  • Details of localization will be finalized by the Mission with a clear Make in India strategy for the electric vehicle components as well as battery
  • The Mission will coordinate with key stakeholders in Ministries/ Departments/states to integrate various initiatives to transform mobility in India


  • Phased battery manufacturing roadmap with initial focus on large-scale module and pack assembly plants by 2019-20 and Gigascale integrated cell manufacturing by 2021- 22
  • Ensuring holistic and comprehensive growth of the battery manufacturing industry in India through PMP
  • Preparing roadmap for enabling India to leverage its size and scale to produce innovative, competitive multi-modal mobility solutions that can be deployed globally in diverse contexts
  • Roadmap for transformative mobility in “New India” by introducing a sustainable mobility ecosystem and fostering Make-in-India


  • Drive mobility solutions to benefits to the industry, economy and country
  • Improving air quality in cities along with reducing India’s oil import dependence and enhancing the uptake of renewable energy and storage solutions
  • The Mission will lay down the strategy and roadmap which will enable India to leverage upon its size and scale to develop a competitive domestic manufacturing ecosystem for electric mobility
  • Benefit all citizens as the aim is to promote ‘Ease of Living’ and enhance the quality of life of our citizens and also provide employment opportunities through ‘Makein-India’ across a range of skill sets