Context: The PM E-DRIVE (Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement) scheme, launched in 2024 (initially for 2 years), has been extended by two years till March 2028. There will be no extra budget allocated to the extension and remaining funds out of the total outlay of ₹10,900 crore will be utilised.
Relevance of the topic: Prelims- Key provisions of PM E-DRIVE scheme.
About PM E-DRIVE scheme
- The ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)’ came into effect on October 1, 2024, and will remain in force until March 31, 2026.
- Outlay: Rs 10,900 crore
- Aim: To accelerate the adoption of electric vehicles (EVs), develop essential charging infrastructure, and establish a robust EV manufacturing ecosystem across the country.
- Initiative of: Ministry of Heavy Industries
- The scheme replaces the earlier FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) Scheme of 2015.
Key Scheme Components:
The PM E-DRIVE scheme is implemented through the following key components:
- Subsidies: Demand incentives for electric vehicles such as e-2 wheelers (e-2W), e-3 wheelers (e-3W), e-ambulances, e-trucks, and other emerging categories of EVs.
- Grants for creating capital assets: Funding will be provided for the acquisition of electric buses (e-buses), the establishment of a comprehensive network of charging stations, and the upgrading of the Ministry of Heavy Industries (MHI) testing facilities.
- Administration of the Scheme including IEC (Information, Education & Communication) activities and fee for project management agency (PMA).
Eligible Categories:
- Two Wheelers: The scheme aims to incentivize approximately 24.79 lakh electric two-wheelers (e-2Ws). Only e-2Ws equipped with advanced batteries are eligible for this incentive. Both commercially registered and privately owned e-2Ws can benefit from the scheme.
- Three-wheelers: To incentivize around 3.2 lakh electric three-wheelers (e-3Ws), covering registered e-rickshaws/e-carts or L5 category vehicles. Only those e-3Ws with advanced battery technology are qualified for the demand incentive. The scheme is solely applicable to e-3Ws used for commercial purposes.
- e-Ambulances:
- Allocation of Rs 500 crore to promote comfortable patient transport.
- Standards: Performance and safety standards to be formulated with MoHFW, MoRTH, and other stakeholders.
- e-Buses:
- Allocation of Rs 4,391 crore for procurement of 14,028 e-buses for STUs/public transport agencies.
- Demand Aggregation: Managed by CESL in cities with populations over 40 lakh.
- Preferences: Given to cities/states replacing old STU buses through authorized scrapping centers (RVSFs).
- e-Trucks: Fund of Rs. 500 crore allocated to promote the adoption of electric trucks to reduce CO2 emissions. Only those holding a scrapping certificate from MoRTH-approved vehicle scrapping centers (RVSF) are eligible for the incentives.
- Public Charging Stations (EVPCS): To establish a robust network of public charging stations, including 22,100 fast chargers for e-4Ws, 1,800 for e-buses, and 48,400 for e-2Ws and e-3Ws. These charging points to be installed in key cities with high electric vehicle penetration and along select highways.
- Modernisation of Testing Agencies: Allocation of Rs 780 crore to upgrade and modernize testing agencies under the Ministry of Heavy Industries (MHI) to equip them with new and emerging technologies, thereby promoting green mobility.
Other key provisions of the scheme:
- Beneficiaries of the Scheme:
- The scheme primarily targets electric two-wheelers (e-2Ws) and three-wheelers (e-3Ws) registered for commercial use. Privately or corporately owned e-2Ws are also eligible.
- EVs purchased by government departments are not qualified for demand incentives, preventing the transfer of funds within government bodies.
- e-Vouchers to avail incentives: The Ministry of Heavy Industries (MHI) is introducing e-Vouchers for EV customers to avail the demand incentive under the scheme.
- The scheme portal will generate an e-KYC Aadhaar FACE authenticated e-Voucher for the customer at the time of purchase.
- This e-voucher will be signed by the buyer as well as the dealer and uploaded on the PM E-DRIVE portal to claim reimbursement of demand incentives under the scheme.
Benefits:
- Environmental Impact: Reduce transportation’s environmental footprint and improve air quality with sustainable transportation solutions.
- Facilitate establishment of essential EV charging infrastructure.
- EV Industry Growth: Promote a competitive and resilient domestic EV manufacturing sector and strengthen the EV supply chain.
- Spur investment in the EV sector and create employment opportunities along the value chain.