The Department-Related Parliamentary Standing Committee on Industry has submitted its 332nd Report to Parliament reviewing the Demands for Grants for the Ministry of Heavy Industries for 2026–27. The report highlights a budgetary shortfall, uneven progress in electric vehicle (EV) schemes, and delays in battery manufacturing and industrial incentive programmes.
In an official statement, the committee said the ministry’s Budget Estimates for 2026–27 stand at INR 79.399 billion against a projected requirement of INR 94.843 billion, indicating a shortfall of about 16 percent. Revenue expenditure accounts for INR 79.371 billion, or 99.96 percent of the allocation, while capital expenditure has been reduced to INR 28.2 million from INR 5.02 billion in 2025–26. The committee also flagged recurring reductions between Budget Estimates and Revised Estimates and declining utilisation levels, which fell from 84.23 percent in 2022–23 to 58.90 percent in 2024–25.
The report reviewed progress under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, which has a total outlay of INR 109 billion for the period April 2024 to March 2028 and has been allocated INR 15 billion in 2026–27. As of 31 January 2026, incentives had been issued for 1,656,335 electric vehicles against a revised target of 2,826,634 units, representing about 58.6 percent achievement. Adoption has been concentrated in electric two-wheelers and electric three-wheelers, while electric buses, trucks and ambulances recorded no progress.
The committee recommended extending incentives for electric two-wheelers until the end of the scheme period in March 2028 and restoring higher targets for electric rickshaws and electric carts. It also called for clear timelines and monitoring mechanisms to accelerate deployment of electric trucks, ambulances and buses.
The report also examined the Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components, which has a total outlay of INR 259.38 billion and an allocation of INR 59.399 billion for 2026–27. As of 31 December 2025, cumulative investment under the scheme stood at INR 390.81 billion against a five-year projection of INR 425 billion, while incremental sales reached INR 411.21 billion compared with a target of INR 2,315 billion. Employment generated under the scheme was reported at 61,241 persons.
The committee also reviewed the PLI scheme for Advanced Chemistry Cell battery storage, which has an outlay of INR 181 billion and aims to create 50 gigawatt-hours of manufacturing capacity. Of this, 40 gigawatt-hours has been awarded and 1 gigawatt-hour commissioned so far, with no incentives disbursed due to non-fulfilment of eligibility conditions.
The report highlighted dependence on imported rare earth and critical minerals used in EV components and batteries, noting that export restrictions from major producing countries have already caused supply chain disruptions affecting Indian industries. It also recommended the introduction of a targeted consumer subsidy mechanism for electric four-wheelers, which are currently not covered under the PM E-DRIVE scheme despite higher upfront costs compared with internal combustion engine vehicles.
The Department-Related Parliamentary Standing Committee on Industry reviews policy implementation, expenditure and programme outcomes of the Ministry of Heavy Industries and related sectors through periodic reports submitted to Parliament.
