MHI may reduce processing time for EV subsidy claims from 40 to 5 days 

To increase the EV adoption in the country, the Ministry of Heavy Industries (MHI) is looking forward to cutting the processing time from 40 days to only 5 days for EV subsidy claims, according to TICE news. To streamline the process and cut down on time, MHI intends to eliminate technical bottlenecks and verification stages. According to reports, there is a significant backlog of subsidy claims, with a total of 893,000 estimated claims and 126,000 claims pending in 2024–2025. There are roughly 109,000 claims for electric two-wheelers.

The update is within the PM Electric Drive Revolution In Innovative Vehicle Enhancement (PM E-DRIVE) program of the Central Government, which is being carried out by HMI to promote the nationwide adoption of EVs. Operating from October 1, 2024, until March 31, 2026, the PM E-DRIVE program has a budget of Rs. 10,900 crore, of which Rs. 1,772 crore is allocated for subsidies for electric two-wheelers and Rs. 4,391 crore is allocated for electric buses. Additionally, the plan includes Rs. 2,000 crore set aside to develop and expand the nation's EV charging network. An additional Rs. 780 crore will be utilised to improve the nation's EV testing capabilities, while another Rs. 902 crore has been set aside for electric three-wheeler subsidies.

In FY2024- 25, 20 lakh EVs were sold in India, bringing the total number of EVs sold to above 61 lakh. Over 50% of sales are EV two-wheelers, with electric three-wheelers accounting for 36% of sales. Moreover, electric cars also observed an 11% year-over-year increase in the same period.