Heavy industries play a big role in India’s growth. This matters a lot from employment point of view. Heavy industries also serve as the backbone for the industrial and infrastructure development of the country. Many sectors, including automotive manufacturing, energy, aerospace, defense and others, fall under the ambit of heavy industries. In order to encourage the economic progress of the country, the government took many initiatives in the year 2024, which helped the heavy industries a lot.
PLI Scheme for Automobile and Auto Component Industry
According to Angel One, the PLI scheme for the automobile and auto component industry aims to boost India’s manufacturing capabilities in advanced automotive technologies, including electric vehicles (EVs) and hydrogen fuel cell components. With a budget of ₹25,938 crore, the scheme is scheduled to run from FY 2023-24 to FY 2027-28, with incentives ranging from 13% to 18% for EV and hydrogen components.
By September 2024, the initiative has attracted investments of ₹20,715 crore. With the help of PLI scheme, 1.4 lakh jobs are expected to be created in five years. The PLI scheme has already approved 82 applicants, which promises to be a significant boost to India’s automotive sector.
FAME-II Scheme
FAME-II Scheme, Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) Scheme is promoting electric mobility in India. With a financial outlay of ₹11,500 crore, the scheme provides demand incentives for different types of EVs including two-wheelers, three-wheelers, four-wheelers, e-buses and public charging stations. By October 2024, the scheme has incentivized more than 16 lakh EVs and supported the installation of thousands of EV charging stations. FAME-II has contributed to the adoption of cleaner transportation options.
PM e-drive scheme
The PM e-Drive scheme, launched by the government in September 2024 with a total outlay of ₹10,900 crore, focuses on promoting green mobility. The components of the scheme include subsidy for electric vehicles, purchase of e-buses and set up of fast chargers for different categories of EVs. Till November 2024, claims worth over ₹600 crore have been submitted under the scheme, further underscoring the government’s commitment to green mobility.
Plan to promote manufacturing of electric passenger cars
The scheme is designed to attract global investment in manufacturing of electric passenger cars in India. According to Angel One, the aim of this initiative is to establish India as a hub in the global EV manufacturing sector. Applicants are required to invest a minimum of ₹4,150 crore within three years with a focus on achieving 25% domestic value addition during this period.
PM e-Bus Service – Payment Security Mechanism Scheme
To ensure successful deployment of electric buses in India, the Ministry launched the PM e-Bus Seva Payment Security Mechanism Scheme in October 2024. With an outlay of ₹3,435 crore, the scheme aims to provide financial protection to original equipment manufacturers (OEMs) and operators in case of default by public transport authorities (PTAs). The initiative involves the procurement and operation of 38,000 e-buses and ensures the continued development of sustainable urban mobility.
PLI scheme for battery storage
To support the growing demand for energy storage solutions, the Government of India approved a PLI scheme of ₹18,100 crore for manufacturing of advanced chemical cells in India. The scheme is expected to play an important role in strengthening the battery storage infrastructure in the country and making the country a global hub for battery manufacturing. The initiative aims to establish 30 GWh of ACC manufacturing capacity, which will support India’s energy storage capabilities.
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