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PM E-DRIVE Scheme

  • 12 Sep 2024

On 11th September, 2024, the Union Cabinet approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE), replacing the FAME India Phase II scheme.

  • This new initiative will promote electric vehicle (EV) adoption across the country with a budget of Rs 10,900 crore for two years.

Key Points

  • Subsidies for EVs: The scheme allocates Rs 3,679 crore in subsidies to support the purchase of electric two-wheelers, three-wheelers, e-ambulances, and e-trucks.
  • A total of 24.79 lakh electric two-wheelers and 3.16 lakh e-three wheelers will benefit from this initiative.
  • Support for Public Transport: The government has allocated Rs 4,391 crore for the procurement of 14,028 e-buses by state transport units.
  • The scheme will also extend support to intercity and interstate e-buses in consultation with state authorities.
  • Special Allocation for E-Ambulances: Rs 500 crore has been set aside specifically for the purchase of e-ambulances, aiming to modernize emergency medical transport through electric-powered vehicles.
  • Demand Aggregation and Implementation: The Ministry of Heavy Industries (MHI) will implement the scheme through Convenience Energy Services Limited (CESL), which will conduct demand aggregation in nine major cities, including Delhi, Mumbai, and Bengaluru, with populations over 40 lakh.
  • E-Vouchers for EV Buyers: To simplify the process, the ministry will introduce Aadhaar-authenticated e-vouchers for EV buyers.
  • The vouchers will be signed by both the buyer and the dealer, and are required for OEMs to claim subsidies under the scheme.
  • Focus on Charging Infrastructure: The PM E-DRIVE scheme not only incentivizes the purchase of EVs but also prioritizes the development of essential charging infrastructure to support the growing EV market across India.
  • Encouraging EV Growth: By offering upfront incentives and supporting public and private transport, the government aims to accelerate EV adoption and reduce carbon emissions in India.