Challenges in EV Adoption Due to High Costs
Therefore, introducing government-sponsored EV subsidies becomes essential in paving the way for EVs in the country. Thanks to the government’s initiatives, electric vehicles are becoming more reasonably priced and accessible in the Indian market.
Government Support to Make EVs Affordable
The Indian government provides an e-vehicle subsidy under the PM E Drive scheme, while individual states have developed their policies to assist EVs become a common alternative.
PM E-DRIVE Scheme Overview and Objectives
‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)’ Scheme, which has a financial budget of Rs.10,900 crore, has been recently approved by Cabinet for the same purpose and come into effect from October 1, 2024, and shall remain in force until March 31, 2026.
What is the PM E-DRIVE Scheme?
Its main goal is to quicken the adoption of electric vehicles, strengthen charging infrastructure, and create a strong EV supply ecosystem in the country.
Budget Allocation and Timeline for PM E-DRIVE
The scheme focuses on demand incentives as a core component, directly aiming at simplifying the claim process.
Key Goals of the PM E-DRIVE Scheme
This scheme is introduced to encourage and enhance the use of electric vehicles in the country.
Focus Areas of the PM E-DRIVE Scheme
Additionally, the scheme aims to expand charging infrastructure within cities and on selected intercity and highway routes.
Demand Incentives to Encourage EV Adoption
With a focus on affordable and eco-friendly public transport, it primarily targets e-2Ws and e-3Ws registered for commercial use.
Expanding Charging Infrastructure Nationwide
However, privately or corporately owned e-2Ws shall be eligible as well. To promote the incorporation of advanced technologies, only EVs equipped with advanced batteries shall get the benefit of this incentive.
Targeted EV Types for Subsidies
The PM E Drive Scheme 2024 aims to offer financial assistance for the purchase of electric buses, electric lorries, e-2Ws, and e-3Ws as well as electric ambulances. The scheme does not apply to hybrid vehicles.
Eligibility Criteria for PM E-DRIVE Subsidies
All EVs must be registered under the Central Motor Vehicles Rules 1989, to be eligible for the subsidy. Vehicles that meet the PM E-DRIVE eligibility criteria shall only be taken into consideration under this scheme.
Registration Requirements for EVs
All e-2Ws and e-3Ws must be manufactured and registered within the scheme’s validity period.
No PM E-DRIVE certificate shall be valid after the scheme expires.
Subsidy Limits and Vehicle Price Thresholds
However, EVs purchased by government departments shall not be qualified for demand incentives. This prevents the transfer of funds within the government itself.
The subsidy is budgeted at Rs. 5,000 per kWh for electric two and three-wheelers registered in FY 2024-25 and Rs. 2,500 per kWh for FY 2025-26.
The maximum amount of the subsidy shall be limited per vehicle or at 15% of their ex-factory price, whichever is lower.
Additionally, only EVs that have an ex-factory price below a specific threshold value specified in the scheme shall be eligible.
PM E-DRIVE Subsidy Details
The subsidy will be given to consumers in the form of an upfront reduced purchase price to facilitate wider adoption, which will be reimbursed to the dealer i.e. OEM (Original Equipment Manufacturer) by the government.
Subsidy Rates for Different EV Types
Not more than one EV of a particular category shall be allowed to be incentivized for an individual.
Conditions for Subsidy Eligibility
All electric vehicles eligible for demand incentives must come with an additional warranty including that of battery from the OEM, along with adequate facilities for the after-sales servicing for the life of the vehicle.
Warranty and After-Sales Service Requirements
All citizens who wish to take advantage of this scheme’s benefits shall read further to find out how to claim the EV subsidy.
How to Claim the EV Subsidy Under PM E-DRIVE
One must ensure that the vehicle is eligible for the subsidy by verifying on the PM E-Drive portal. The customer shall proceed with the online application once the purchase is done.
Verifying EV Eligibility on the PM E-Drive Portal
Step-by-Step Application Process
Step 1: Visit the Official Website
To begin the claim process, go to the official website of the PM E Drive Scheme to start the application.
Step 2: Click on ‘Apply Here’
Locate and select the “Apply Here’ option to begin the registration on the homepage.
Step 3: Fill and Complete the Application Form
A new page shall appear where all the required details must be entered, such as customer name, contact information, and vehicle details. Then, attach all the required documents, such as identification and proof of vehicle purchase.
Step 4: Review and Submit
Once all the details have been filled out, review and verify the application form for submission. Once the details have been verified, click on the “Submit” button.
Step 5: Confirmation
You will receive a confirmation message following a successful submission. Make sure to keep a copy of the form for future reference and wait for the generation of the e-voucher.
Using the e-Voucher for Subsidy Redemption
e-Voucher Generation and Authentication Process
Then, the scheme portal shall generate an e-KYC Aadhar authenticated e-Voucher for the customer at the time of purchase.
A download link for the e-voucher shall be sent to the registered mobile number of the customer. This e-voucher must be signed by the buyer and submitted to the dealer to avail the subsidy.
Dealer and Customer Responsibilities in the Claim Process
Thereafter, the e-voucher must also be signed by the dealer and uploaded on the PM E-DRIVE platform. Both parties shall receive an SMS to track the claim process.
Additionally, the signed e-voucher would also be sent to both of them through SMS on their registered number. The signed e-voucher would be essential for the dealer to claim reimbursement of the incentive under this scheme.
Conclusion:
This subsidy is a great initiative by the government to address pressing issues related to environmental pollution and fuel security while facilitating sustainable transportation.
The promotion of electric vehicles and their supporting infrastructure is anticipated to generate substantial employment opportunities and increase significant investments in the EV sector.
All things considered, this scheme is a significant step towards India’s transportation sector becoming cleaner and much more sustainable.