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A plain-language guide to central and state EV charging incentives

30 Sep 2026 · 6 min read · EVee Buddy Team

Government support can cut the cost of a charging project significantly, but the schemes are written in official language. Here is what they mean in practice.

The central scheme: PM E-DRIVE

PM E-DRIVE is the Ministry of Heavy Industries' main EV support scheme. It has a total outlay of ₹10,900 crore and has been extended to 31 March 2028. It supports electric two- and three-wheelers, buses, trucks and ambulances, and public charging infrastructure.

About ₹2,000 crore is set aside for public charging. Reported targets are around 72,300 public chargers: roughly 22,100 fast chargers for cars, 1,800 chargers for buses and 48,400 for two- and three-wheelers.

How the charging subsidy works

The subsidy depends on where the charger is installed. Reported categories are:

  • Category A: government premises open to the public, such as offices, hospitals and educational institutions. Up to 100% of upstream infrastructure and charger cost.
  • Category B: public-sector locations in cities and on highways, such as railway stations, airports, PSU fuel outlets, metro stations, bus depots and toll plazas. Up to 80% of upstream infrastructure and 70% of charger cost.
  • Category C: other locations, including malls, market complexes, city streets and highways. Up to 80% of upstream infrastructure only.
  • Category D: battery swapping and battery charging stations. Up to 80% of upstream infrastructure.

"Upstream infrastructure" means the electrical work that brings power to the charger: transformers, cabling, panels and similar. Cost benchmarks are set using Bureau of Energy Efficiency norms.

Who can apply

The scheme works through government bodies: central ministries, central public sector enterprises, state and UT governments and their agencies. Private operators typically take part through partnerships, tenders and bidding rounds run by these bodies, rather than applying directly.

State incentives

Most states have their own EV policies. Depending on the state, these can include capital subsidies for chargers, concessional electricity tariffs for charging, access to government land on revenue-share terms, and faster approvals. Terms differ widely, so check your state's EV policy and nodal agency.

Electricity tariff support

Under the Ministry of Power's 2024 charging guidelines, public charging uses a single-part electricity tariff set by state regulators, with cheaper rates during solar hours (9 am to 4 pm). This lowers running costs, especially for daytime charging.

How we help

EVee Buddy helps site owners understand which incentives may apply to their location and prepares projects to meet scheme requirements.

Sources

Figures as reported in the sources above at the time of writing. Schemes and rules change, so confirm current terms with the relevant ministry, your state nodal agency or DISCOM before making decisions.

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