Explained | PM E-Drive Scheme: Subsidy, Incentives, Plan - All You Need To Know

New Delhi: The government on September 11 launched PM E-DRIVE, a new electric vehicle subsidy scheme which is set to transform India’s electric vehicle industry.  The Union Cabinet approved the scheme with an outlay of Rs 10,900 crore for two years to boost the adoption of electric vehicles in India, replacing the flagship FAME programme that ran for nine years till March.

The decision on PM Electric Drive Revolution In Innovative Vehicle Enhancement (PM E-DRIVE) Scheme was taken at the meeting of the Union Cabinet chaired by Prime Minister Narendra Modi

As per Information and Broadcasting Minister Ashwini Vaishnaw, the scheme will support 24.79 lakh electric two-wheelers, 3.16 lakh e-three-wheelers, and 14,028 e-buses. The PM E-DRIVE will also support 88,500 charging sites, Vaishnaw said.

What does the scheme offer?

The new scheme offers subsidies/demand incentives worth Rs 3,679 crore to incentivise adoption of electric two-wheelers, electric three-wheelers, e-ambulances, e-trucks and other emerging elecric vehicles (EVs). A sum of Rs 4,391 crore has also been provided for procurement of 14,028 e-buses by state transport undertakings and public transport agencies.

Besides, Rs 500 crore has been earmarked for the deployment of e-ambulances. This is a new initiative of the government to promote the use of e-ambulance for comfortable patient transport. A sum of Rs 500 crore has been provided for incentivising adoption of e-trucks. Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) Scheme was launched in April 2015.

Until March 2025, each electric two-wheeler will receive a subsidy of 10,000 rupees, while electric three-wheelers will get a subsidy of 50,000 rupees. "Under this scheme, two-wheelers, three-wheelers, trucks, ambulances, and e-buses will be covered. One important aspect we are focusing on is supporting hybrid ambulances to ensure 100% surety," Vaishnaw said.

In addition, the PM E-DRIVE scheme aims to address the issue of charging infrastructure by installing fast chargers nationwide. It also seeks to achieve a 10% market share for electric two-wheelers and a 15% market share for electric three-wheelers by March 2026. (With PTI inputs)

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