The government is planning to offer Rs. 40,000 crore push in the form of subsidies to fast track EVs in India. Since this will be a central government project, subsidies will be given to existing players as well as new entrants.
The govt. aims to boost the manufacturing of Li-Ion batteries and other EV parts at micro, small and medium enterprise level.
The money will be spent in the next ten years in the form of tax benefits, subsidized loans, or direct loans to MSMEs and will be implemented alongside the FAME scheme.
This soon-to-be-announced scheme aims at reducing the dependence on China for important EV components and will fall under Make-in-India campaign.