India Accelerates Electrification Across Transport, Industry And Agriculture With Strong Policy Push

The Government of India is continuing its efforts to promote the electrification of transport, industries, agriculture, and other sectors as part of its broader strategy to improve energy efficiency, strengthen energy security, and support the transition to cleaner sources of energy. While the Ministry of Power has not fixed sector-wise electrification targets, it is working with various ministries to provide the infrastructure, policies, and regulatory support needed to expand the use of electricity across the economy.

In the transport sector, the Ministry of Power has introduced the Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure, 2024, and the Guidelines for Installation and Operation of Battery Swapping and Charging Stations, 2025. These guidelines are aimed at accelerating the development of EV charging networks across the country and making electric mobility more accessible. The transition is also supported through the PM E-DRIVE Scheme of the Ministry of Heavy Industries and the PM-eBus Sewa Scheme implemented by the Ministry of Housing and Urban Affairs.

The industrial sector is being encouraged to adopt energy-efficient technologies through initiatives led by the Bureau of Energy Efficiency (BEE). These include the Perform, Achieve and Trade (PAT) scheme, the Carbon Credit Trading Scheme (CCTS), and the Assistance in Deploying Energy Efficient Technologies in Industries & Establishments (ADEETIE) Scheme. Launched in July 2025 with an outlay of ₹1,000 crore, the ADEETIE Scheme covers 60 industrial clusters across 14 energy-intensive sectors. It supports Investment Grade Energy Audits and offers interest subvention of 5% for Micro and Small Enterprises and 3% for Medium Enterprises to help them implement energy-efficiency measures.

In the agriculture sector, the Government is promoting the electrification and solarisation of agricultural pumps through the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme of the Ministry of New and Renewable Energy. The BEE is also conducting awareness programmes to encourage the adoption of energy-efficient electric appliances and technologies, including electric cooking solutions.

To support rising electricity demand, the Government is strengthening the country’s power distribution system under the Revamped Distribution Sector Scheme (RDSS). The programme focuses on modernising distribution infrastructure, improving the performance of distribution companies (DISCOMs), and expanding demand-side management initiatives.

Energy storage is another major focus area. The Ministry of Power is implementing a Viability Gap Funding (VGF) scheme worth ₹3,760 crore to support the deployment of 13.8 GWh of Battery Energy Storage Systems (BESS). In addition, another VGF scheme with financial assistance of ₹5,400 crore from the Power System Development Fund has been approved to develop 30 GWh of BESS capacity across 15 states and NTPC Limited.

The Government is also taking several steps to improve grid reliability and facilitate higher renewable energy integration. These include expanding interstate and intrastate transmission networks, developing Green Energy Corridors, deploying Battery Energy Storage Systems and Pumped Storage Projects, establishing Renewable Energy Management Centres for renewable energy forecasting and scheduling, implementing ancillary services and the Real Time Market, and enabling flexible operation of thermal power plants to better accommodate renewable energy generation.

According to the Bureau of Energy Efficiency’s India Energy Scenario Report 2024-25, electricity currently accounts for around 23% of India’s total final energy consumption. Although no separate target has been set to increase this share, the Government continues to promote greater electrification of suitable end-use applications while expanding non-fossil fuel-based electricity generation, strengthening transmission and distribution infrastructure, and enhancing energy storage capacity to ensure affordable, reliable, and secure power supply across the country.