The Government of India has taken one step forward in enhancing the country’s adoption of electric vehicles.
The Union Cabinet headed by Prime Minister Narendra Modi has given the green signal for a new scheme called the “PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme” to promote electric mobility across India.
The scheme, proposed by the Ministry of Heavy Industries (MHI), will have a total investment of ₹10,900 crore over two years. This scheme aims to maximize the adoption of electric vehicles and support the development of related infrastructure.
Here are some key details about the scheme that each one needs to know:
- Total Subsidies and demand incentives: ₹3,679 crore
- Electric Two-Wheelers (e-2Ws): Target to support the sale of 24.79 lakh units
- Electric Three-Wheelers (e-3Ws): Target to support the sale of 3.16 lakh units
- Electric Buses (e-buses): Target to support the sale of 14,028 units
- Electric Ambulances (e-ambulances): Included in the scheme for promoting purchase
- Electric Trucks (e-trucks): Included in the scheme for promoting the purchase
Nitin Gadkari Ji Posted on LinkedIn about the scheme, he wrote “Union Cabinet, chaired by Prime Minister Shri Narendra Modi Ji, has approved the ‘PM E-DRIVE Scheme’ with a budget of Rs 10,900 over 2 years to advance electric mobility in India.
The scheme provides Rs 3,679 crore in subsidies and incentives for electric two-wheelers, three-wheelers, e-ambulances, e-trucks, and other EVs, including e-vouchers for buyers. It also allocates Rs 500 crore for e-ambulances and Rs 4,391 crore for 14,028 e-buses.
The scheme supports the installation of 22,100 fast chargers for e-4Ws, 1,800 for e-buses, and 48,400 for e-2Ws/3Ws, with a total investment of Rs 2,000 crore in charging infrastructure. Priority will be given to cities and states buying e-buses by scrapping old buses, and Rs 500 crore is allocated for e-truck deployment.”
Process of Purchase
To simplify purchasing electric vehicles, the Ministry of Heavy Industries is introducing E-vouchers.
Upon purchasing an EV, buyers will receive an Aadhaar-authenticated e-voucher through the scheme’s online portal, sent directly to their registered mobile number. Both the buyer and the dealer will sign this voucher, which will then be uploaded to the PM E-DRIVE portal.
This streamlined process ensures that the original equipment manufacturer (OEM) can easily claim reimbursement for the incentives provided under the scheme.
Focus on Electric Ambulances
The PM E-DRIVE Scheme also lays focus on Electric Ambulances, aligned with a broader initiative to integrate electric vehicles into the healthcare sector.
A total of Rs 500 Crore will be invested in the E- ambulances which will ensure secure and safe transport facilities for the patients.
Ministry of Health and Family Welfare (MoHFW), the Ministry of Road Transport and Highways (MoRTH), and other relevant stakeholders will take care of the proper functioning of E- Ambulances.
Budget Allocation for E-Bus Procurement
The government has earmarked ₹4,391 crore for the procurement of 14,028 electric buses by state transport undertakings (STUs) and public transport agencies.
This initiative focuses on nine major cities with populations exceeding 40 lakh, such as Delhi, Mumbai, Kolkata, Chennai, and Bengaluru. These cities are prioritized to boost urban mobility through e-buses.
Additionally, the scheme supports the acquisition of intercity and interstate e-buses, with a preference for buses purchased after scrapping old ones at MoRTH-approved vehicle scrapping centers.
Incentives for E-Trucks
Trucks, which are major contributors to air pollution, have been included in the scheme, with ₹500 crore allocated to incentivize the purchase of electric trucks.
These incentives will be available for those who provide scrapping certificates from authorized scrapping centers.
This policy aligns with the MoRTH Vehicle Scrapping Scheme, encouraging a shift toward cleaner transportation and reducing emissions.
Charging Infrastructure Development
To reduce “range anxiety” among EV users, the scheme dedicates ₹2,000 crore to set up extensive charging infrastructure.
The plan includes 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.
These chargers will be installed in cities with high EV penetration and along major highways, ensuring easy access for electric vehicles and supporting long-distance travel.
Modernization of Vehicle Testing Agencies
Recognizing the growing EV ecosystem, ₹780 crore has been allocated for modernizing vehicle testing agencies under the Ministry of Heavy Industries.
These agencies will be upgraded to handle emerging green mobility technologies.
This modernization effort is essential for ensuring the safety, reliability, and compliance of new EV technologies with industry standards.
Final Thoughts
The PM E-DRIVE scheme aims to foster the adoption of electric vehicles by offering upfront incentives and developing charging infrastructure.
This initiative supports the government’s goal of promoting competitive and resilient EV manufacturing under the Aatmanirbhar Bharat initiative.
The scheme’s phased manufacturing program (PMP) encourages domestic production, thereby strengthening the EV supply chain and promoting sustainable transportation solutions.
