Heavy industries play a crucial role in the economic development of a nation, and India is no exception. These industries are not only vital for generating employment but also serve as the backbone for the country’s industrial and infrastructural growth. They encompass a wide range of sectors including automotive manufacturing, energy, aerospace, defence, and more.
The Ministry of Heavy Industries (MHI) is at the forefront of steering these sectors toward modernisation, sustainability, and global competitiveness. Through strategic initiatives and policies, MHI aims to strengthen India’s position as a manufacturing hub, focusing on innovative technologies, sustainable practices, and job creation.
Approved in September 2021, the PLI Scheme for the Automobile and Auto Components Industry aims to boost India’s manufacturing capabilities in advanced automotive technologies (AAT), including Electric Vehicles (EVs) and Hydrogen Fuel Cell components. With a budget of ₹25,938 crore, the scheme is set to run from FY 2023-24 to FY 2027-28, offering incentives ranging from 13% to 18% for EV and hydrogen components.
By September 2024, the scheme has attracted an investment of ₹20,715 crore, with ₹10,472 crore in incremental sales and a projected creation of 1.4 lakh jobs over five years. The program has already approved 82 applicants, promising a significant boost to India’s automotive sector.
The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) Scheme, launched in 2019, continues to foster India’s transition to electric mobility. With a financial outlay of ₹11,500 crore, the scheme offers demand incentives for various types of EVs, including two-wheelers, three-wheelers, four-wheelers, e-buses, and public charging stations.
As of October 2024, the scheme has incentivized over 16 lakh EVs and supported the establishment of thousands of EV charging stations. FAME-II has not only contributed to the adoption of cleaner transportation options but also helped implement policy measures such as the reduction in GST on EVs and the development of state-specific EV policies.
The PM E-DRIVE Scheme, launched in September 2024 with a total outlay of ₹10,900 crore, focuses on promoting green mobility. The scheme’s components include subsidies for electric vehicles, procurement of e-buses, and the installation of fast chargers for various categories of EVs. The scheme is aimed at developing the EV manufacturing ecosystem and accelerating the country’s transition to sustainable mobility. By November 2024, over ₹600 crore in claims have been submitted under the scheme, further underlining the government’s commitment to green transportation.
This scheme, notified in March 2024, is designed to attract global investments in the manufacturing of electric passenger cars in India. The initiative aims to position India as a key player in the global EV manufacturing sector. Applicants are required to invest a minimum of ₹4,150 crore within three years, with a focus on achieving 25% domestic value addition during this period. The scheme aligns with the “Make in India” initiative, encouraging indigenous manufacturing and fostering employment generation in the electric vehicle sector.
In a bid to ensure the successful deployment of electric buses in India, the Ministry introduced the PM e-Bus Sewa Payment Security Mechanism Scheme in October 2024. With an outlay of ₹3,435 crore, the scheme aims to provide financial security to Original Equipment Manufacturers (OEMs) and operators in case of defaults by Public Transport Authorities (PTAs). This initiative covers the procurement and operation of up to 38,000 e-buses and ensures the continued growth of sustainable urban mobility.
To support the growing demand for energy storage solutions, the Indian government approved a ₹18,100 crore PLI Scheme for the manufacturing of Advanced Chemistry Cells (ACC) in India. The scheme is expected to play a key role in strengthening India’s battery storage infrastructure and making the country a global hub for battery manufacturing. With an investment of approximately ₹14,810 crore from three selected firms, the initiative aims to set up 30 GWh of ACC manufacturing capacity, providing a significant boost to India’s energy storage capabilities.
The Ministry of Heavy Industries has been instrumental in transforming India’s industrial landscape through forward-thinking initiatives and schemes aimed at sustainability, innovation, and job creation. With a focus on electric mobility, manufacturing of advanced automotive components, and energy storage, these initiatives are paving the way for a greener, more self-reliant future. By fostering growth in high-tech sectors and encouraging global investment, India is on track to become a global leader in the manufacturing of electric vehicles, advanced automotive technologies, and clean energy solutions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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