MHI’s measures to transfer country to a global Original Equipment Makers

Dec 13: Ministry of Heavy Industries (MHI) has taken the following steps to transfer the country into a global supplier base for global Original Equipment Makers (OEMs):

  1. The Government on 12th May 2021 approved the Production Linked Incentive (PLI) scheme, ‘National Programme on Advanced Chemistry Cells (ACC) Battery Storage’ to promote manufacturing in the country. The budgetary outlay of the scheme is Rs. 18,100 crores. The scheme envisages to establish a cumulative ACC battery manufacturing capacity of 50 GWh. The details of the scheme may be seen at
  2. Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry with a budgetary outlay of Rs. 25,938 crore provides financial incentives to boost domestic manufacturing of Advance Automotive Technologies (AAT) products (including electric vehicles and their components).The details of the scheme may be seen at

Ministry of Heavy Industries (MHI) notified Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) Scheme for five years starting from 01st April 2019 with a total budgetary support of Rs. 10,000 crore. This phase mainly focuses on supporting the electrification of public & shared transportation and aims to support through demand incentive 7090 e-buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers. In addition, the creation of charging infrastructure is also supported under the Scheme.

Under phase-II of FAME India Scheme, subsidy amounting to Rs. 5283 crore has been given to electric vehicle manufacturers on sale of 11,75,888 no. of electric vehicles as on 08.12.2023. The details of electric vehicles incentivised category wise are as under:

Sl. No.Wheeler TypeTotal No. of Vehicle
1.2 wheeler10,38,724
2.3 wheeler1,22,345
3.4 wheeler14,819

Further, MHI sanctioned 6862 electric buses to various cities/STUs/State Govt. entities for intra-city operations. Out of 6862 e-buses, 3487 e-buses have been supplied to STUs as of date i.e. 29th November, 2023 with grants of Rs. 1248 Cr. released by MHI.

Ministry of Heavy Industries has also sanctioned Rs. 800 Cr. as capital subsidy to the three Oil Marketing Companies (OMCs) of the Ministry of Petroleum and Natural Gas (MoPNG) for the establishment of 7,432 electric vehicle public charging stations.

This information was given by the Minister of State for Heavy Industries, Shri Krishan Pal Gurjar, in a written reply in Lok Sabha today.

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