New Delhi, April 13 (IANS) The government has accelerated the push for electric vehicles and strengthened domestic capabilities in critical minerals for clean energy technologies to reduce dependence on oil imports amid volatility in global prices and potential disruptions in supply chains due to the West Asia crisis, according to an official statement issued on Monday.​

Since the onset of the crisis, the Ministry of Heavy Industries has undertaken coordinated measures to sustain the growth of electric mobility and address supply chain vulnerabilities in electric vehicle components. ​

The Ministry has approved the extension of the ₹10,900 crore PM E-DRIVE Scheme to sustain the momentum of electric vehicle adoption and manufacturing.​

The e-2W segment has been extended by three months up to 31 July 2026, while the e-3W segment, including e-rickshaws and e-carts, has been extended by two years up to 31 March 2028, the statement explained.​

Policy support under the PM E-DRIVE Scheme has been streamlined to ensure continuity of incentives, boost electric vehicle adoption and promote domestic manufacturing.​

The Union Cabinet approved on 26 November 2025 the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) with an outlay of ₹7,280 crore. ​

The scheme targets the establishment of 6,000 MTPA integrated REPM manufacturing capacity in India and aims to promote domestic manufacturing of sintered REPM, strengthen supply chains for the electric vehicle, defence, and aerospace sectors, and support the Aatmanirbhar Bharat and Net Zero 2070 goals.​

Steps are being taken to operationalise the REPM scheme to progressively enhance localisation of electric vehicle components. Continuous engagement is being maintained with OEMs, component manufacturers and industry stakeholders to strengthen supply chain resilience.​

As part of the implementation, a pre-bid conference was held on 7 April 2026 with participation from 25 leading companies and the Request for Proposal was issued on 20 March 2026. The bidding process is being conducted through a transparent two-cover Least Cost Selection system on the CPP Portal.​

These measures are supported by the ongoing Phased Manufacturing Programme to increase domestic value addition in electric vehicle manufacturing. ​

The combined implementation of PM E-DRIVE, REPM and Phased Manufacturing Programme schemes is expected to strengthen the entire electric vehicle value chain.​

PM E-DRIVE provides demand-side support and policy certainty to OEMs, enabling them to scale production and accelerate electric vehicle adoption. ​

The REPM scheme addresses supply-side constraints by promoting domestic manufacturing of critical rare earth-based components.​

The Phased Manufacturing Programme enables phased localisation and reduces import dependence across electric vehicle sub-systems. These initiatives will benefit manufacturers, MSMEs and component suppliers through increased domestic value addition, supply chain stability and investment opportunities.​

For citizens, these measures will enhance the affordability, accessibility, and reliability of electric vehicles, while reducing dependence on imported fuels and components, which will help shield consumers from global price volatility, the statement added.​

–IANS

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