Electric Vehicles

India Releases ​$1.45 Bn worth of Action Plan for E-Vehicles; Ban on IC-based 2-Wheelers from 2025

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India, under its “National Mission for Transformative Mobility and Battery Storage” initiative, has formulated an action plan to run electric two-wheeler and three-wheeler vehicles. The action plan formulated by NITI Aayog has proposed to ban all IC (internal combustion) engine powered two-wheelers and three-wheelers in India. The ban on IC-based two-wheelers will start in 2025 and for hree-wheelers the ban will start in 2023.

This information was given by Mr. Nitin Gadkari, Union Minister for Road Transport & Highways in response to a question in Lok Sabha today.

For the promotion of electric mobility in the country, the Department of Heavy Industry has notified Phase-II of the FAME India Scheme [Faster Adoption and Manufacturing of Electric (& Hybrid) Vehicles in India], vide S.O. 1300 dated 8th March 2019, with the approval of Cabinet with an outlay of Rs. 10,000 crore (~ US$1.45 Bn) for a period of 3 years commencing from 1st April, 2019.

The Phase-II of the FAME-India Scheme is proposed to be implemented through the following verticals:


  1. Demand Incentives – The important components of the Scheme which directly help in demand generation of electric vehicles (e-vehicles).
  2. Establishment of network of charging stations.
  3. Administration of the Scheme including Publicity, IEC (Information, Education & Communication) activities.

The following categories of Vehicles will be eligible for Demand Incentives:

  • e-Bus
  • Four Wheelers (Electric, Plug in Hybrid and Strong Hybrid) (e-4W).
  • Three Wheelers (Electric) including Registered E-Rickshaws / e-Carts (e-3W)
  • Two wheelers (Electric) – (e-2W)

In the e-3W, e-4W and e-Bus segments, incentives will be applicable mainly to vehicles used for PUBLIC transport or those registered for COMMERCIAL purposes. However for e-2W segment, incentives are also applicable for privately owned vehicles in addition to those used for public transport or for commercial purpose.

Eligibility for Incentives

The Incentives shall be available for buyers (end users/consumers) in the form of an upfront-reduced purchase price to enable wider adoption, which will be reimbursed to vehicle manufacturers by Govt. of India.

  • For individual beneficiaries, not more than one vehicle of particular categories will be incentivized.
  • The incentives would be reviewed annually or earlier by the Project Implementation & Sanctioning Committee (PISC).
  • All models eligible for demand incentives will be eligible for three year comprehensive warranty including Battery.
  • Demand incentives for e-buses will be provided only on operational model (OPEX) and will be delivered though State/City Transport Corporations (STUs).
  • Under the action plan, it is proposed to restrict Demand incentives to vehicles with ex-factory price less than a particular threshold value as defined in the Annexure 2 of scheme notification.

Vehicles which comply with the FAME India Phase-II eligibility criteria, will be considered under this scheme, and for this all the vehicles need to be registered under CMVR, 1989 for becoming eligible for reimbursement of demand incentives.


It is proposed to extend uniform demand incentive @ INR 10,000/- per KWh for all e-vehicles (including PHEV and Strong Hybrid) except e-Buses. For buses, uniform maximum demand incentive @ 1NR 20,000/- per KWh is proposed, which is further subject to competitive bidding amongst the OEMs.

All vehicle models approved under FAME India scheme Phase 11, will have to undergo Conformity of Production COP test for all the eligibility parameters by recognized testing agencies at least once a year.

FAME-II certificate will be valid for one year (April to March). All vehicle models approved under this Scheme, will have to submit re-validation certification to DHI/N AB at the frequency of one year as per clause 2.14 & 2.15 above, complying to the FAME India Phase II eligibility parameters. Such OEM will proceed for re-validation after ensuring the compliance to the latest notifications as per CMVR, 1989, by testing agencies recognized under rule 126 of CMV, 1989 and Administrative procedure as per FAME India Scheme Phase-II document.

Source – Press Information Bureau, Department of Heavy Industries Notification (PDF)


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