Page 77 - Policy Economic Report -August 2026

POLICY AND ECONOMIC
OIL & GAS MARKET

approximately 28.30 lakh electric vehicles (EVs) including e-2W, e-3W, e-Trucks, e-buses and e-
Ambulances. Further, grant for upgradation of testing agencies is also available under this scheme. An
allocation of ?4,391 crore has been made under the scheme for deployment of 14,028 e-buses out of
which 14,000 e-buses have been allocated. ?2,000 crore has been allocated for deployment of EV PCS on
pan India basis. Phased Manufacturing Programme (PMP)Mandates the domestic manufacturing of EV
components, including battery packs, in a phased manner.

PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: This Scheme notified on 28.10.2024, has an
outlay of ?3,435.33 crore and aims to support deployment of more than 38,000 electric buses. The
objective of this scheme is to provide payment security to e-bus operators in case of default by Public
Transport Authorities (PTAs). As on 10.07.2026, the PM-eBusSewa – Payment Security Mechanism (PSM)
Scheme covers 27,555 e-buses. Of these, 10,000 e-buses are under the PM-eBusSewa Scheme of the
Ministry of Housing and Urban Affairs (MoHUA), 14,000 e-buses are under the PM E-DRIVE Scheme of the
Ministry of Heavy Industries (MHI), and 3,555 e-buses under various State Government/State Transport
Undertaking (STU) initiatives.

Further, following initiatives have also been taken up by the Government of India to increase the use of
electric vehicles in the country:–

I. GST on electric vehicles and chargers/ charging stations for electric vehicles has been reduced to
5%.

II. Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will
be given green license plates and be exempted from permit requirements.

III. MoRTH issued advisory to states to waive road tax on EVs, which in turn will help reduce the initial
cost of EVs.

Number of EVs supported under MHI’s schemes as on 30.06.2026, are as under:

Scheme FAME-I FAME-II PM E-DRIVE PLI Auto & Auto
(Sold) Scheme Components

(Sold) (Sold)

No. of EVs 2.80 lakh 16.72 lakh 26.59 lakh ~21.30 lakh
supported /sold (up to 31.03.2026)

MHI has contributed towards reducing pollution by supporting the aforesaid number of EVs.

As of 07.08.2026, a total of 67,657 EV chargers are installed across various States and Union Territories,
which includes 1,139 battery swapping station chargers.

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