EV India Policy 2026: FAME, PM E-DRIVE, Subsidies, Charging Rules and the Road to 2030

India’s EV policy landscape has changed faster in the last five years than it did in the previous two decades. What began as a modest subsidy programme has grown into a full national strategy; one that now covers vehicle manufacturing, charging infrastructure, battery production, import regulations, and localisation mandates.

Today, the government is not just trying to get more people to buy electric vehicles. It is building an entire EV ecosystem inside the country. That includes homegrown battery manufacturing, public charging networks, local component supply chains, and a deliberate push to reduce India’s dependence on imported EV technology and time by time framing of different EV India Subsidy programs.

Whether you are planning to buy an electric scooter or car, want to set up a charging station, track EV industry developments, or simply want to understand how India plans to hit its 2030 targets; this article breaks it all down in plain and understandable manner.

At a Glance: India’s Active EV Schemes and Targets

How India’s EV Policy Evolved

India’s approach to electric mobility started cautiously, but the pace picked up sharply after 2019.

FAME-I: Where It All Started

The Faster Adoption and Manufacturing of Electric Vehicles scheme — commonly known as FAME — was India’s first structured attempt to push EV adoption through government subsidies.

The initial phase focused on:

• Pilot projects to test EV feasibility
• Hybrid vehicle support
• Early charging infrastructure trials
• Building basic public awareness

EV uptake during this phase remained limited. Charging stations were hard to find, vehicle prices were steep, battery technology was expensive, and most buyers in Indian cities were simply not aware of the options available.

FAME-II: The Real Push Begins

FAME-II was the policy that actually moved the needle for India’s EV market.

The scheme offered battery-linked subsidies — meaning the incentive amount was tied to battery capacity in kWh rather than a flat discount. This rewarded vehicles with larger, more capable batteries.

FAME-II Subsidy Breakdown

For electric two-wheelers, the subsidy was capped at 40% of the vehicle’s ex-factory cost. This is what made affordable electric scooters from brands like Ola Electric, Ather, TVS, and Bajaj significantly cheaper on the showroom floor.

FAME-II had a measurable impact on:

• Electric scooter sales in Indian cities
• E-rickshaw adoption in Tier 2 and Tier 3 towns
• Overall EV awareness among urban buyers

EMPS 2024: Bridging the Gap After FAME-II

When FAME-II ended, the government introduced the Electric Mobility Promotion Scheme (EMPS) 2024 as a short-term measure to maintain momentum.

How EMPS Subsidies Compared to FAME-II

The incentives were noticeably smaller:

• Rs 5,000 per kWh (down from Rs 15,000 under FAME-II)
• Maximum subsidy capped at Rs 10,000 per electric scooter

Unlike FAME-II, EMPS 2024 did not cover electric cars or e-buses. The scheme was specifically aimed at keeping affordable electric scooter sales alive during the policy transition period. The government estimated EMPS would support around 3.33 lakh electric two-wheelers.

PM E-DRIVE Scheme: India’s Charging Infrastructure Push

PM E-DRIVE is currently one of the most consequential EV policies in India, not because it puts money in buyers’ pockets directly, but because it is building the charging backbone that will make long-distance and everyday EV use practical for everyone.

Its primary objectives are:

• Expanding public charging stations across cities and highways
• Supporting fast charging corridors on national routes
• Making EV charging accessible for buyers in smaller cities

PM E-DRIVE Charging Subsidies: How They Work

Category A and B Cities and Highway Locations

The scheme provides:

• 80% subsidy on upstream infrastructure (civil work, power connection, transformer, etc.)
• 70% subsidy on EV charging equipment (EVSE — the actual charger hardware)

Category C Locations

• 80% subsidy on upstream infrastructure only

Government Benchmark Costs for Charging Stations

To prevent cost inflation and bring consistency, the government has fixed benchmark costs that determine how much subsidy is actually paid out.

Upstream Infrastructure Benchmarks

Charger Equipment Benchmarks

CCS-2 (Combined Charging System Type 2) is currently the standard DC fast charging protocol for electric four-wheelers in India. Knowing this benchmark is useful if you are planning to invest in charging infrastructure — the subsidy calculation is based on these figures, not your actual invoice.

India’s 2030 EV Target: What Is EV30@30?

India officially targets 30% of all new vehicle sales to be electric by 2030. This is the EV30@30 goal, adopted as part of India’s broader clean energy transition.

Earlier drafts of the policy discussed more aggressive targets, including 100% electrification for certain vehicle categories, but the final national target settled at 30% overall EV adoption.

How EV Policy Connects to India’s Climate Commitments

India’s EV push is not standalone policy — it is directly tied to the country’s international climate pledges:

• Reduce emissions intensity by 45% compared to 2005 levels, by 2030
• Achieve net-zero emissions by 2070

Transport is one of the largest contributors to urban air pollution and crude oil imports in India. Reducing petrol and diesel vehicle dependency through EV adoption is considered a long-term structural necessity, not just an aspirational target.

Charging Infrastructure Policy: What the Rules Actually Say

One of the most common concerns for first-time EV buyers in Indian cities is the question of charging availability. The government has issued clear guidelines to address this.

The Urban Charging Grid Rule

The Ministry of Power recommends at least one public charging station within every 3 km x 3 km grid in cities. The goal is to reduce range anxiety by ensuring that no urban area is more than a few kilometres away from a public charger.

Highway Charging Requirements

• One charging station every 25 km on national highways
• Stations required on both sides of the road
• For heavy commercial EVs: one fast charging station every 100 km

Each highway charging station must have:

• Minimum two chargers
• At least 100 kW charging output
• Support for 200V to 1000V charging systems (covering both passenger EVs and commercial vehicles)

EV Charging Is a Service, Not a Licensed Utility

A significant policy clarification changed the landscape for private charging businesses: EV charging has been classified as a service under the Electricity Act 2003.

This means you do not need an electricity distribution licence to set up and operate a public EV charging station in India. This single clarification made it far easier for petrol pump owners, housing societies, malls, and entrepreneurs to enter the EV charging business.

EV Charging Tariffs: What You Actually Pay Per Unit

The government has capped what charging stations can charge customers, creating a predictable cost structure for EV owners.

DISCOM Electricity Supply Rates to Charging Stations

• During solar hours (9 AM to 4 PM): 0.8x the average cost of supply
• During non-solar hours: 1.2x the average cost of supply

This pricing structure is designed to encourage daytime charging, which coincides with peak solar generation — a practical policy for a country where solar capacity is expanding rapidly.

Service Charge Ceiling for Charging Station Operators

AC Slow Charging

DC Fast Charging

These tariff ceilings are applicable till March 31, 2026, and are expected to be revised based on grid costs and EV adoption levels.

Land Allocation for Charging Stations

Government entities can allocate land for EV charging infrastructure through revenue-sharing arrangements. The standard rate is Rs 1 per kWh of electricity billed at the station. Lease durations are typically fixed at 10 years.

This makes government land — including roadside plots, bus depots, and municipal parking areas — accessible to private charging operators, which is critical for scaling urban infrastructure quickly.

New EV Policy 2024: Bringing Global Manufacturers to India

The New EV Policy 2024 is primarily aimed at global EV manufacturers — companies like Tesla, BYD, and other international brands — who want to sell vehicles in India.

The government’s offer: come to India, manufacture here, and you get significant duty benefits. The conditions, however, are stringent.

Reduced Import Duty

Qualifying manufacturers can import EVs at 15% customs duty for CKD (Completely Knocked Down) units — substantially lower than the standard rates.

Minimum Investment Requirement

To qualify, a manufacturer must invest at least Rs 4,150 crore (approximately USD 500 million) in Indian manufacturing.

Domestic Value Addition (DVA) Rules

This is the most demanding part of the policy:

• 25% domestic value addition required within 3 years of approval
• 50% domestic value addition required within 5 years

This is among the strictest localisation conditions placed on any automotive policy globally, and it signals that the government is not interested in India becoming a simple assembly destination.

Import Volume Limits

• Maximum 8,000 imported EVs per year under the standard investment threshold
• If investment exceeds USD 800 million, up to 40,000 EVs can be imported overall — but still capped at 8,000 annually

Bank Guarantee Conditions

Manufacturers receive duty benefits only after they meet the localisation targets and complete their investment commitments. The government can withhold guarantees if conditions are not fulfilled on schedule.

Phased Manufacturing Programme (PMP): Building Indian Supply Chains

The PMP policy uses progressive import duty increases to nudge EV manufacturers towards local sourcing and assembly.

Vehicle-Level Import Duties

Component-Level Import Duties

The government has also imposed 15% duty on:

• Lithium-ion cells
• Battery packs
• Motors
• Controllers
• Chargers

This is designed to make it more economical for manufacturers to source these parts from Indian suppliers rather than importing them — gradually building a domestic EV component ecosystem.

Safety Standards for Public EV Charging Stations

Charging infrastructure in India must comply with specific technical and safety regulations.

Mandatory Inspection Schedule

• Inspection required before a charging station is energised for the first time
• Annual inspections for the first 3 years of operation
• Inspections every 4 years after that

Weather Protection Requirements

Outdoor charging equipment must meet at least IPX4 protection standards. In Indian conditions — monsoon flooding, summer heat touching 45°C, coastal humidity, and dusty highway environments — this is a baseline requirement, not a luxury.

Challenges That Still Remain

Despite the policy momentum, several real problems continue to slow EV adoption in India.

High Vehicle Prices

Even with subsidies, electric vehicles remain more expensive than comparable petrol alternatives for most buyers. Battery cost is still the dominant factor, and until Indian cell manufacturing reaches scale, this gap will not close easily.

Charging Infrastructure in Smaller Towns

Metro cities and major highways are improving. But if you live in a Tier 3 town or use state highways, you will still struggle to find reliable fast chargers. This unevenness in infrastructure remains a genuine barrier.

Battery Import Dependency

India still imports a large share of lithium-ion cells and the raw materials that go into them. Local battery manufacturing is picking up — with PLI-backed projects from companies like Ola Electric, Amara Raja, and Exide — but meaningful scale is still a few years away.

Policy Uncertainty

Frequent changes in subsidy structure create confusion among buyers, manufacturers, and dealers alike. The shift from FAME-II to EMPS 2024, with its reduced subsidy rates, is one clear example of how policy transitions can dampen short-term demand. State EV policies have also changed multiple times in several states, adding to the uncertainty.

What These Policies Mean for Regular EV Buyers

If you are evaluating whether to buy an EV in India today, here is what these policies actually mean for you:

• Subsidies directly reduce the purchase price of electric two-wheelers and some three-wheelers
• Many states offer additional road tax exemptions on top of central subsidies
• Charging tariff caps mean your per-unit running cost is regulated and predictable
• The grid charging rule means urban fast charging access will continue to improve
• The New EV Policy 2024 will likely bring more international EV options to Indian showrooms over the next three to five years

If localisation succeeds as planned, battery costs should come down, and EV prices should become genuinely competitive with petrol vehicles — possibly by the late 2020s.

Where India’s EV Policy Is Headed Next

India’s EV strategy is moving beyond buyer subsidies into industrial and infrastructure policy. The next phase will likely prioritise:

• Domestic lithium-ion cell manufacturing at scale
• Faster highway charging corridors for inter-city travel
• Urban fleet electrification — buses, auto-rickshaws, delivery vehicles
• Battery recycling and second-life battery regulation
• Grid integration for managing EV charging load during peak hours
• Renewable energy linkage for greener charging

Heavy commercial EVs — trucks and long-haul freight vehicles — are also expected to receive more focused policy attention in the coming years, as they represent a major share of India’s fuel import bill.

State EV Policies

Over and above National EV Policies; The states of India are also drafting their own EV policies in line with national policy to become a part of nation’s EV growth engine. You can find state EV policies and subsidy benefits below. The list will be updated as long as possible.

• Maharashtra EV Policy
• Maharashtra EV Subsidy

Frequently Asked Questions

Also Read:

• EV India Policy 2026: FAME, PM E-DRIVE, Subsidies, Charging Rules and the Road to 2030
• EV Subsidy India 2026: Every Central and State Benefit You Should Know Before Buying
• Maharashtra EV Policy 2026: Subsidies, Toll Exemptions and Everything You Need to Know