India's EV plans to get a policy boost as govt may fast-track 3 big-ticket schemes

India's electric vehicle (EV) sector is set for a policy boost as the government plans to fast-track three key schemes within its first hundred days. These include allocating 10 GWh capacity under the PLI ACC for local production of advanced batteries and introducing a payment security mechanism to support the wider adoption of electric buses. Additionally, FAME 3, aimed at incentivizing EV adoption with a US$ 1.2 billion (Rs. 10,000 crore) budget, will be expedited.

Sources indicate these measures aim to accelerate India's shift towards cleaner mobility solutions and achieve net-zero objectives. The government has received seven bids for the PLI ACC initiative, emphasizing the role of local battery manufacturing in cost reduction. Discussions continue to enhance payment security mechanisms to support bus manufacturers and expand the electric bus fleet, building on incentives under FAME 2, which subsidized 7,000 electric buses. India's collaboration with the United States targets deploying 10,000 e-buses through a US$ 390 million fund, with plans for a US$10 billion lending fund to deploy 38,000 e-buses, marking a strategic move towards cleaner transport solutions.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.