The processing time for EV subsidy claims is presently set at 40 days. However, to give a push to the adoption of EVs, the Ministry of Heavy Industries would like to see a much-reduced turnaround time. There are reports that there is a huge backlog regarding subsidy claims, with about 126,000 claims pending for 2024-25, while overall, there are 893,000 claims. Approximately 109,000 claims have been submitted for electric two-wheelers.
As the name suggests, this is under the PM Electric Drive Revolution in Innovative Vehicle Enhancement scheme by the Central government towards increased adoption of EVs throughout the country. The scheme will be effective from October 1, 2024, to March 31, 2026.
Presently, it has an outlay of Rs. 10,900 crore, of which Rs. 4,391 crore is allocated for electric buses and Rs. 1,772 crore for electric two-wheeler subsidies. The scheme also proposes an allocation of Rs. 2,000 crore for the charging infrastructure of EVs in the country. Further, Rs. 902 crore have been set aside to subsidize electric three-wheelers, while Rs. 780 crore will be utilized to upgrade EV testing facilities in the country.
In the fiscal year 2024-25 alone, around 2 million EV sales were recorded, taking cumulative sales above 6.1 million units. Almost 50 percent of sales are for EV two-wheelers, and electric three-wheelers account for 36 percent.
In FY 2024-2025, electric cars noted an 11% year-on-year growth. Bihar, Uttar Pradesh, Maharashtra, Tamil Nadu, and Karnataka contribute to more than 50 percent of EV sales in India.
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