The government officially notified the PM E-DRIVE scheme on Monday, detailing an outlay of INR 10,900 crore. According to the gazette notification, the scheme will be implemented from October 1, 2024, to March 31, 2026. Its primary goals are to accelerate the adoption of electric vehicles (EVs), establish charging infrastructure, and foster the development of an EV manufacturing ecosystem in the country.
The PM E-DRIVE scheme will also absorb the existing Electric Mobility Promotion Scheme (EMPS), 2024. “The number of vehicles and expenditure under EMPS, 2024 will be incorporated into the PM E-DRIVE Scheme,” the notification stated.
The scheme offers subsidies for electric two- and three-wheelers, e-ambulances, e-trucks, and other emerging EV categories. Additionally, it provides grants for the creation of capital assets, such as e-buses, the development of charging station networks, and the upgrading of testing agencies identified under the program.
However, the central government’s efforts to promote e-mobility will require additional support from state governments. “States must provide a range of fiscal and non-fiscal incentives,” the notification emphasized, suggesting measures like permit exemptions, concessional road taxes, toll and parking fee waivers, and reduced registration charges as potential incentives.
In all, sops worth INR 8,070 crore have been earmarked for EVs. Buses get the lion’s share at INR 4,391 crore, followed by two-wheelers at INR 1,772 crore. A Phased Manufacturing Programme (PMP) has also been notified under PM E-DRIVE to support localisation of EV components. EV chargers will need to have a minimum of 50% domestic value addition (DVA) from December 1, 2024, to be eligible for sops under the scheme.
The notification also said financial support for electric two-wheelers will be halved to INR 5,000 per vehicle from 2025-26. For electric three-wheelers, the subsidy will be capped at INR 25,000 per vehicle.
The PM E-DRIVE, like its predecessor Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, is aimed at subsidising locally manufactured vehicles. But the earlier iteration was marred with instances of companies selling largely imported vehicles and wrongly availing subsidies. The government has attempted to address these concerns in the new scheme through stringent checks.
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