PLI, FAME Schemes Powering India's EV Expansion and Heavy Industry Growth

Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, led the meeting of the Parliamentary Consultative Committee for the Ministry of Heavy Industries, which concentrated on the production of heavy electrical equipment and the advancement of electric vehicles. The gathering included Union Minister of State for Heavy Industries & Steel, Bhupathiraju Srinivasa Varma, along with senior officials and committee members.

The conversations focused on strategies to boost local manufacturing of heavy electrical equipment and accelerate the acceptance of electric vehicles to aid India’s drive for sustainable transportation and infrastructure growth.

During the meeting, Kumaraswamy emphasized India's industrial advancement, mentioning that in line with the "Viksit Bharat 2047" vision, the nation is establishing itself as a worldwide manufacturing and export center. “Manufacturing contributes 17% to GDP, playing a key role in economic growth, with engineering, capital goods, automotive, and renewables among the high-impact sectors,” he stated.

The minister highlighted the Ministry of Heavy Industries' importance in establishing a technology-focused, sustainable, and globally competitive heavy manufacturing sector. He highlighted that initiatives like the Enhancement of Competitiveness in the Indian Capital Goods Sector, FAME, and Production-Linked Incentive (PLI) programs for automotive and advanced chemistry cells are crucial for boosting domestic manufacturing.

Officials emphasized that the manufacturing industry provides jobs for more than 27.3 million individuals as of FY24, with government programs such as "Make in India" and the PLI initiative boosting growth. Bharat Heavy Electricals Limited (BHEL) was mentioned as a significant player in power generation, transmission, and industrial solutions, with an increasing emphasis on renewable energy, especially solar and wind.

The Faster Adoption and Manufacturing of Electric Vehicles (FAME) Scheme has approved more than 7,400 electric buses, greatly enhancing urban transportation. The PLI scheme, featuring a budget of Rs 25,938 crore for five years, is boosting India's competitive edge in automobile production. The Scheme to Enhance Electric Passenger Car Manufacturing in India (SMEC) seeks to draw investment from international EV producers, whereas the PM E-DRIVE Scheme, featuring a budget of Rs 10,900 crore, endorses eco-friendly transportation.