Indian govt launches 'PM E-DRIVE' scheme with an outlay of Rs 10,900 crore

Prime Minister Narendra Modi-led Union Cabinet has approved the launch of the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme' to push the adoption of electric mobility in the country.

With an outlay of Rs 10,900 crore over two years, the scheme replaces the FAME-II subsidies that concluded in March after a nine-year run. According to Union Minister, FAME-II subsidies support over 1.6 million EVs in the country.

The focus of the outlay is to boost the adoption of electric vehicles (EVs), particularly two-wheelers, three-wheelers, hybrid ambulances, buses, and trucks, though it excludes electric cars.

Under the new scheme, the government aims to support the deployment of 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 electric buses.

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Additionally, demand incentives totalling Rs 3,679 crore will be available for various EV categories, including electric trucks and ambulances.

To simplify the EV buying process, the Ministry of Heavy Industries (MHI) has also introduced Aadhaar-authenticated e-vouchers under the scheme. These e-voucher will be generated through the scheme's portal at the time of purchase and sent directly to the buyer's registered mobile number. Buyers can present these e-vouchers at dealerships to avail demand incentives.

Thereafter, the e-voucher will also be signed by the dealer and uploaded on the PM E-DRIVE portal. The signed e-voucher will be sent to the buyer and dealer through an SMS. The signed e-voucher will be essential for OEM to claim reimbursement of demand incentives under the scheme, as per the release.

A significant portion of total outlay, Rs 4,391 crore, has been allocated to the procurement of 14,028 electric buses for state transport units and public transport agencies.

Apart from this, Rs 500 crore has been allocated to support the deployment of e-ambulances. Additionally, Rs 500 crore has been allocated for incentivising adoption of e-trucks.

The scheme also proposes the installation of 22,100 fast chargers for e-4 Ws, 1800 fast chargers for e-buses and 48,400 fast chargers for e-2W/3Ws. The outlay for EV PCS will be Rs.2,000 crore.