The Prime Minister Modi-led Union Cabinet has launched the 'PM Electric Drive Revolution in Innovative Vehicle Enhancement' (PM E-DRIVE) scheme, in a bid to further push EV adoption in the country. The scheme comes with a financial outlay of Rs 10,900 crore over two years and comes as a replacement for the FAME-II subsidies that expired in March. This budgetary outlay will aim to enhance EV adoption with a focus on two-wheelers, three-wheelers, ambulances, buses, and trucks.
PM E-Drive scheme: Breakdown by segments
With this scheme, the government plans to support the deployment of 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 electric buses. The PM E-DRIVE scheme also provides demand incentives worth Rs 3,679 crore for various categories of EVs, including electric trucks, ambulances, and other emerging electric vehicles.
A notable addition under this scheme is the introduction of e-vouchers to simplify the EV buying process. These Aadhaar-authenticated e-vouchers will be generated through the scheme's portal at the time of purchase and sent directly to the buyer's registered mobile number. Buyers can present these e-vouchers at dealerships to claim subsidies.
A significant portion of the budget, Rs 4,391 crore, has been allocated to the procurement of 14,028 electric buses for state transport units and public transport agencies. With an allocation of Rs 500 crore, the scheme aims to support the deployment of e-ambulances, marking a crucial step towards integrating EVs into healthcare.
PM E-Drive scheme: Strengthening EV infrastructure
To address concerns related to EV charging infrastructure and range anxiety, the scheme provides for the installation of 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for e-buses, and 48,400 fast chargers for electric two- and three-wheelers. The total budget for setting up these electric vehicle public charging stations (EVPCS) is Rs 2,000 crore.