PM E-DRIVE Scheme Announced
The Indian government has taken a significant step towards promoting electric vehicles (EVs) with the launch of the PM E-DRIVE scheme. This ambitious initiative, notified on Monday, allocates a substantial ₹10,900 crore for boosting EV adoption, developing charging infrastructure, and enhancing manufacturing capabilities.
The PM E-DRIVE scheme will be operational from October 1, 2024, to March 31, 2026, aiming to accelerate India's transition towards electric mobility. It effectively merges the ongoing Electric Mobility Promotion Scheme (EMPS) 2024, incorporating its budget and vehicle targets into the new framework.
The scheme offers subsidies for a wide range of EVs, including two-wheelers, three-wheelers, e-ambulances, and e-trucks. Additionally, grants are available for building charging infrastructure, supporting e-bus fleets, and upgrading testing facilities. Notably, electric buses receive a significant portion of the funding, with ₹4,391 crore allocated, while two-wheelers are allotted ₹1,772 crore.
State governments are expected to play a crucial role by providing additional incentives. The scheme encourages states to offer fiscal and non-fiscal benefits, such as road tax concessions, toll exemptions, and parking fee reductions, to further promote EV adoption.
To boost local production of EV components, the scheme introduces a Phased Manufacturing Programme (PMP). From December 2024, EV chargers must meet a minimum 50% domestic value addition (DVA) requirement to qualify for subsidies.
Financial support for electric two-wheelers will be halved to ₹5,000 per vehicle by 2025-26, while three-wheeler subsidies will be capped at ₹25,000 per vehicle. To address past issues of subsidy misuse under the earlier FAME scheme, the government has tightened regulations to prevent companies from benefiting while selling imported vehicles.
The PM E-DRIVE scheme represents a significant commitment from the Indian government to accelerate the adoption of electric vehicles and establish a robust EV ecosystem within the country. This initiative is expected to play a crucial role in reducing emissions, promoting sustainable transportation, and fostering domestic manufacturing capabilities.