Evaluate how India's EV policy has moved from FAME to PM E-DRIVE and PLI schemes. Does it adequately address two- and three-wheelers and public transport?
In this answer
India's EV policy started with FAME-I (2015) and FAME-II (2019–24), which mainly subsidised buyers. It has since become an ecosystem approach that pairs PM E-DRIVE (₹10,900 crore) [1] with supply-side PLI schemes [4]. The change is sound in design, though gaps remain in carrying it out.
Evolution: FAME → PM E-DRIVE + PLI
- FAME-II added charging infrastructure to demand incentives. For example, ₹800 crore went to oil marketing companies for 7,432 public fast chargers [3].
- PM E-DRIVE covers a wider range of targets. It funds e-ambulances and e-trucks, gives ₹2,000 crore for about 72,000 public chargers, and has been extended to March 2028 [1][2][5].
- PLI-Auto (₹25,938 crore) and PLI-ACC (₹18,100 crore, 50 GWh) shift the focus from subsidising sales to domestic manufacturing [4].
FAME-I/II ──► PM E-DRIVE ──────────────► PLI-Auto + PLI-ACC
(buyer subsidy) (demand + chargers + buses) (cells, vehicles made in India)
Policy shift: from buying EVs to building the EV ecosystem
Two- and three-wheelers: adequately addressed?
- Strength: The scheme targets 24.79 lakh e-2Ws and 3.16 lakh e-3Ws [1]. About two-thirds of the planned chargers (48,400) are for 2W/3W [2]. This matches how most Indians travel, including gig workers and auto drivers.
- Gaps:
- Battery-swapping standards are still unsettled.
- Chargers are concentrated in large cities.
- Only four firms were selected under PLI-ACC [4], so 2W makers still rely on imported battery cells.
Public transport: adequately addressed?
- Strength: ₹4,391 crore is set aside for 14,028 e-buses run by state transport undertakings (STUs) [1], supported by 1,800 bus fast chargers [2].
- Gaps:
- 14,028 buses is small compared with India's total bus fleet.
- Many STUs are in financial difficulty.
- Depots need more power from DISCOMs.
- Proposals must come through government nodal agencies, which slows rollout in smaller cities [2].
Verdict: The policy covers 2W/3W reasonably well. Its coverage of public transport is only partial.
Overall, India's EV policy has matured from buyer subsidies alone into a full ecosystem strategy. The next steps are:
- battery-swapping standards,
- faster domestic cell production,
- financing for STUs to buy e-buses,
- more chargers in smaller cities.
These would make the shift inclusive and self-reliant, advancing SDG 7 and SDG 11 and India's Net Zero 2070 pledge.
Sources
- 1PIB – Cabinet approves PM E-DRIVE Scheme with an outlay of Rs.10,900 crore over two years (MHI)outlay; e-2W/e-3W targets; ₹4,391 crore for 14,028 e-buses
- 2PIB – India Accelerates National EV Charging Grid under PM E-Drive (MHI)₹2,000 crore for ~72,000 PCS; 48,400 2W/3W and 1,800 e-bus chargers; nodal-agency route
- 3PIB – Centre sanctions Rs. 800 crores under FAME Scheme Phase II for 7432 public fast charging stationsFAME-II charging support
- 4PIB – PM e-DRIVE and PLI Schemes (MHI)PLI-Auto and PLI-ACC outlays; 50 GWh; four ACC beneficiaries
- 5PIB – MHI extends tenure of PM E-DRIVE Scheme to 31 March 2028scheme extension