The Ministry of Heavy Industries (MHI) has officially launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, with an investment of INR 10,900 Crores aimed at accelerating the adoption of electric vehicles (EVs) across India.
This two-year initiative will be implemented from October 1, 2024, to March 31, 2026.
The PM E-DRIVE scheme will provide substantial subsidies to manufacturers, enhance charging infrastructure, and strengthen local manufacturing capabilities for EVs.
This new initiative will subsume existing expenditures and vehicle counts under the previous Electric Mobility Promotion Scheme (EMPS) 2024.
As an extension of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) scheme, the PM E-DRIVE program outlines significant financial incentives for various categories of electric vehicles.
Notably, INR 1,772 Crores will be allocated for subsidizing electric two-wheelers in fiscal years 2025 and 2026, with incentives capped at INR 10,000 per vehicle in FY25, subsequently reduced to INR 5,000 in FY26.
Further investments include INR 902 Crores for electric three-wheelers, which encompass e-rickshaws, e-carts, and L5 vehicles.
Additionally, INR 500 Crores has been earmarked for electric ambulances and another INR 500 Crores for electric trucks and emerging categories.
The scheme also assigns a significant portion of INR 4,391 Crores for the deployment of 14,028 electric buses priced below INR 2 Crores each.
Moreover, INR 2,000 Crores will be directed toward establishing adequate public charging infrastructure for various EV categories, while INR 780 Crores is set aside for upgrading EV testing facilities.
A budget of INR 50 Crores is allocated for administrative expenses, including INR 35 Crores for knowledge partners and technical expertise, and INR 15 Crores for events and exhibitions to promote the initiative.
To enhance localization, a phased manufacturing program (PMP) will enforce a minimum 50% domestic value addition in the manufacturing of EV chargers, effective from December 1, 2024.
An inter-ministerial empowered committee known as the Project Implementation and Sanctioning Committee (PISC) will oversee the monitoring and execution of the PM E-DRIVE initiative.
Chaired by the Secretary of Heavy Industries, the 12-member panel includes representatives from NITI Aayog, MHI, and various departmental secretaries, ensuring a coordinated approach to tackle implementation challenges.
The notification follows the recent approval by the Union Cabinet of the PM E-DRIVE scheme, effectively replacing the FAME-II scheme, which had an initial outlay of INR 10,000 Crores and was extended multiple times until March 31, 2024.
In the interim, the government launched the EMPS 2024, allocating INR 500 Crores as a temporary measure to sustain EV adoption momentum.
