New Delhi, April 13 (NationPress) The government is intensifying its efforts to promote electric vehicles and enhance domestic capabilities in critical minerals essential for clean energy technologies, aiming to diminish reliance on oil imports. This initiative comes in response to the volatility in global prices and potential supply chain disruptions stemming from the West Asia crisis, as per an official announcement released on Monday.

In light of the ongoing crisis, the Ministry of Heavy Industries has implemented coordinated measures to support the growth of electric mobility and mitigate vulnerabilities in the supply chains for electric vehicle components.

The ministry has sanctioned the continuation of the ₹10,900 crore PM E-DRIVE Scheme to maintain the momentum of electric vehicle adoption and production.

The e-2W segment will be extended for three months until July 31, 2026, while the e-3W segment, which includes e-rickshaws and e-carts, has been prolonged for two years until March 31, 2028, as clarified in the statement.

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

On November 26, 2025, the Union Cabinet approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) with a budget allocation of ₹7,280 crore.

This scheme aims to establish an integrated manufacturing capacity of 6,000 MTPA for REPM in India, promoting domestic production of sintered REPM, enhancing supply chains for the electric vehicle, defence, and aerospace sectors, and supporting Aatmanirbhar Bharat and Net Zero 2070 objectives.

Efforts are underway to operationalize the REPM scheme to progressively improve the localization of electric vehicle components. Continuous dialogues are being maintained with OEMs, component manufacturers, and industry stakeholders to fortify supply chain resilience.

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

These initiatives are bolstered by the ongoing Phased Manufacturing Programme designed to enhance domestic value addition in electric vehicle production.

The synergistic implementation of the PM E-DRIVE, REPM, and Phased Manufacturing Programme schemes is anticipated to fortify the entire electric vehicle value chain.

The PM E-DRIVE provides demand-side support and policy stability to OEMs, empowering them to scale production and expedite electric vehicle adoption.

The REPM scheme tackles supply-side challenges by encouraging domestic manufacturing of essential rare earth-based components.

The Phased Manufacturing Programme facilitates gradual localization and diminishes import reliance 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 consumers, these initiatives will improve the affordability, accessibility, and reliability of electric vehicles while reducing dependence on imported fuels and components, thereby shielding them from global price fluctuations, the statement concluded.