The Union Cabinet on Wednesday approved the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme,’ with a budget of Rs. 10,900 crore over the next two years. This ambitious scheme aims to advance electric mobility across India by offering significant subsidies and incentives for various electric vehicles (EVs).
The scheme allocates Rs. 3,679 crore for demand incentives, which will support electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), e-ambulances, e-trucks and e-buses. To facilitate the process, e-vouchers will be introduced for EV buyers, which must be signed and submitted to claim the incentives.
Additionally, Rs. 500 crore is designated for deploying e-ambulances, enhancing patient transport with improved comfort and efficiency. For public transportation, the scheme sets aside Rs. 4,391 crore for procuring 14,028 e-buses, prioritizing cities with populations exceeding 40 lakh. Another Rs. 500 crore is earmarked for incentivizing e-trucks, with a focus on vehicles that come with scrapping certificates from approved centers.
To address range anxiety among EV users, the scheme plans to install 22,100 fast chargers for electric four-wheelers (e-4Ws), 1,800 for e-buses, and 48,400 for e-2Ws/e-3Ws, with an investment of Rs. 2,000 crore. Furthermore, Rs. 780 crore will be used to modernize EV testing agencies, ensuring they are equipped to handle new and emerging technologies.
The PM E-DRIVE scheme is designed to accelerate EV adoption, reduce environmental impact and bolster the domestic EV manufacturing industry through a phased manufacturing program (PMP).