The Union Cabinet, led by Prime Minister Narendra Modi, approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E DRIVE) Scheme on September 11, 2024, to boost electric mobility in India. The scheme has a budget of ₹10,900 crore for two years.
Union Minister for Heavy Industries & Steel, H.D. Kumaraswamy, and Minister of State for Heavy Industries & Steel, Bhupathi Raju Srinivasa Varma, launched the PM E DRIVE Scheme at a special event at Bharat Mandapam, New Delhi. This launch is a significant milestone in India’s electric mobility journey. The event was attended by Secretary of the Ministry of Heavy Industries, Kamran Rizvi, Additional Secretary, Dr. Hanif Qureshi, senior government officials, and automotive industry leaders.
The PM E DRIVE Scheme is designed to boost the adoption of electric vehicles (EVs) and develop crucial charging infrastructure nationwide, fostering cleaner and more sustainable transportation.
Under this scheme, the Ministry of Heavy Industries (MHI) has introduced e-vouchers for EV customers to access demand incentives. These e-vouchers simplify the incentive process, ensuring a smooth experience for both consumers and manufacturers. At the launch event, a live demonstration highlighted how dealers can generate e-vouchers for customers.
Govt EV subsidy scheme in one frame
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At the event, Union Minister of Heavy Industries & Steel, H.D. Kumaraswamy, remarked, “Today marks a significant milestone as we transition from the FAME Scheme and the Electric Vehicle Promotion Scheme (EMPS) to the PM E DRIVE Scheme. On the eve of Mahatma Gandhi’s 155th Birth Anniversary, we are contributing not only to ‘Swachh Bharat’ in line with the Hon’ble Prime Minister’s vision but also to ‘Swachh Vahan’. This initiative fulfills the Government of India’s commitment to launch the scheme within 100 days.”
He further added, “With the launch of the PM E DRIVE Scheme, the Ministry of Heavy Industries is making significant strides in promoting sustainable and inclusive mobility. This initiative is poised to accelerate EV adoption across the country and enhance domestic innovation and manufacturing.”
Minister of State for Heavy Industries & Steel, Bhupathi Raju Srinivasa Varma, underscored Prime Minister Narendra Modi’s vision of achieving net-zero emissions by 2070. He emphasized that the PM E DRIVE Scheme will be crucial in accelerating EV adoption and establishing essential charging infrastructure nationwide, contributing to a cleaner and more sustainable future.
Secretary of the Ministry of Heavy Industries, Kamran Rizvi, praised the automotive industry leaders for their steadfast efforts in advancing electric mobility in India. He called on all Original Equipment Manufacturers (OEMs) to actively participate and help make the PM E DRIVE Scheme a tremendous success.
Subsidies/Demand Incentives:
- ₹3,679 crore allocated for electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), ambulances (e-ambulances), trucks (e-trucks), and emerging EVs.
- Supports 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.
E-Voucher Introduction:
- Aadhaar-authenticated e-vouchers for EV buyers, generated at purchase and sent to registered mobile numbers.
- Signed e-voucher is essential for dealer submission and OEM reimbursement.
E-Ambulances:
- ₹500 crore allocated for deployment.
- Standards to be set in consultation with the Ministry of Health and Family Welfare (MoHFW) and the Ministry of Road Transport and Highways (MoRTH).
E-Buses:
- ₹4,391 crore for procuring 14,028 e-buses via CESL in 9 major cities.
- Preference given to buses replacing scrapped State Transport Undertaking (STU) buses.
E-Trucks:
- ₹500 crore for incentivizing e-trucks.
- Scrapping certificates from Registered Vehicle Scrapping Facilities (RVSF) mandatory for incentives.
Public Charging Stations:
- ₹2,000 crore outlay for installing 22,100 fast chargers for electric four-wheelers (e-4Ws), 1,800 for e-buses, and 48,400 for e-2Ws/3Ws in high EV penetration cities and highways.
Test Agency Modernization:
- ₹780 crore for upgrading Ministry of Heavy Industries (MHI) test agencies to handle new EV technologies.
Electric Two-Wheelers (e-2Ws)
- Must be equipped with advanced batteries.
- Both commercial and privately or corporately owned registered e-2Ws are eligible.
Electric Three-Wheelers (e-3Ws):
- Must be equipped with advanced batteries.
- Applicable to registered e-rickshaws/e-carts or L5 category vehicles.
- Only e-3Ws registered for commercial use are eligible.
E-Ambulances:
- Specific eligibility criteria are being developed in consultation with the Ministry of Health and Family Welfare (MoHFW) and the Ministry of Road Transport and Highways (MoRTH).
E-Trucks:
- Eligibility criteria are being finalized and will be announced soon.
- Scrapping certificates from Registered Vehicle Scrapping Facilities (RVSF) are mandatory for incentives.
E-Buses:
- Preference is given to buses replacing scrapped State Transport Undertaking (STU) buses.
General Requirements:
- Aadhaar-authenticated e-vouchers are generated at the time of purchase and sent to the registered mobile numbers of EV buyers.
- Signed e-vouchers are essential for dealer submission and OEM reimbursement.
Are there any provisions for retroactive incentives
The PM E-DRIVE Scheme does not currently include provisions for retroactive incentives. The incentives are designed to be accessed through Aadhaar-authenticated e-vouchers generated at the time of purchase. These e-vouchers are essential for dealer submission and OEM reimbursement, ensuring a streamlined and transparent process for new EV purchases.
