Context: The Ministry of Heavy Industries (MHI) has released operational guidelines for the PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme, a flagship initiative to accelerate India’s electric mobility transition.
About PM E-DRIVE Scheme
Launched in October 2024, the scheme has a financial outlay of ₹10,900 crore and is effective till March 2026, with certain components extended till March 2028. It builds on earlier initiatives such as FAME-I and FAME-II, but with a larger budget and broader scope.
Objectives
- Promote adoption of electric 2-wheelers, 3-wheelers, ambulances, trucks, and buses.
- Support public transport electrification to enhance mass mobility.
- Establish a robust EV charging infrastructure across the country.
- Encourage domestic EV manufacturing through a Phased Manufacturing Programme (PMP).
- Reduce vehicular emissions and improve air quality, aligning with Aatmanirbhar Bharat.
Key Components
- Demand Incentives/Subsidies:
- Upfront subsidies for purchase of EVs.
- Capped at 15% of ex-factory price or fixed limits for eligible categories.
- Grants for Capital Assets:
- Acquisition of e-buses and expansion of charging infrastructure.
- Upgradation of testing facilities under MHI.
- Public Charging Stations:
- Nearly 72,300 charging stations to be deployed with an outlay of ₹2,000 crore.
- BHEL as the nodal agency for demand aggregation and a Unified EV Super App for real-time tracking and payments.
- Governance Mechanism:
- Implementation through Project Implementation & Sanctioning Committee (PISC) chaired by Secretary, MHI.
- Periodic review of incentives, charging infrastructure, and EV uptake.
- State-Level Incentives:
- Road tax waivers, toll exemptions, and reduced parking fees encouraged.
Significance
- Strengthens EV supply chain and boosts domestic manufacturing.
- Supports India’s climate commitments under the Paris Agreement.
- Helps reduce dependence on fossil fuels and enhances energy security.
- Encourages private sector participation through Viability Gap Funding (VGF).