PM E-DRIVE Scheme: Accelerating India’s Electric Vehicle Revolution

The recently launched ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)’ scheme, approved by the Cabinet with an investment of Rs. 10,900 crore, came into effect on October 1, 2024, and will remain active until March 31, 2026. This program aims to accelerate the adoption of electric vehicles (EVs) nationwide, bolster essential charging infrastructure, and foster a strong domestic EV manufacturing ecosystem. Since the scheme's launch, EV sales have reached record highs, underscoring the rapid growth of EV adoption.

The PM E-DRIVE initiative focuses on enhancing mass mobility through support for public transport, offering incentives for EV purchases and encouraging the expansion of charging networks. Its core goals include reducing transportation-related emissions, improving air quality, and building a globally competitive EV manufacturing sector in alignment with the Atma Nirbhar Bharat mission. Through a phased manufacturing program (PMP), the scheme supports domestic production and strengthens the EV supply chain.

Key Components of the PM E-DRIVE Scheme:

• Subsidies: Incentives are available for purchasing various types of EVs, including electric two-wheelers (e-2W), three-wheelers (e-3W), e-ambulances, e-trucks, and other emerging EV categories.
  
• Grants for Capital Assets: Funds are allocated to acquire electric buses (e-buses), establish a widespread network of charging stations, and upgrade testing facilities within the Ministry of Heavy Industries (MHI).
  
• Administrative Support: This includes funds for Information, Education & Communication (IEC) activities and fees for project management agencies (PMAs).
  

Surge in Electric Vehicle Sales

The Ministry of Heavy Industries is spearheading India’s push toward electric mobility, aligning with the country’s net-zero carbon emissions goal for 2070. Through the Electric Mobility Promotion Scheme (EMPS) and PM E-DRIVE, electric two-wheeler sales reached 5,71,411 units in FY 2024-25, while sales of electric three-wheelers, including e-rickshaws and e-carts, recorded notable increases across various categories.

Eligible EV Categories and Targets

• Two-Wheelers: The scheme aims to incentivize around 24.79 lakh electric two-wheelers with advanced batteries, covering both commercially registered and privately owned vehicles.
  
• Three-Wheelers: Approximately 3.2 lakh electric three-wheelers, including e-rickshaws and L5 category vehicles, are eligible, provided they utilise advanced battery technology. This support is limited to commercial e-3Ws.
  E-Ambulances: With a dedicated fund of Rs. 500 crore, this new initiative aims to deploy e-ambulances across the country. Eligibility criteria, currently under review with the Ministry of Health and Family Welfare, will be announced shortly.
  
• E-Trucks: The scheme has set aside Rs. 500 crore to promote E-trucks, particularly for logistics. Only vehicles with scrapping certificates from Ministry of Road Transport and Highways (MoRTH)-approved scrapping centres qualify.
  
• E-Buses: The scheme allocates Rs. 4,391 crore for the procurement of 14,028 e-buses through State Transport Undertakings (STUs) in nine major cities, with guidelines favouring cities that replace old buses with e-buses. Additional guidelines will support e-bus deployment in challenging terrains, such as hilly and coastal regions.
  

Expansion of Charging Infrastructure

The scheme aims to develop a robust public charging network with 22,100 fast chargers for electric four-wheelers (e-4Ws), 1,800 for e-buses, and 48,400 for e-2Ws and e-3Ws. A total of Rs. 2,000 crore is designated for charging infrastructure, targeting high EV-penetration cities and select highways to boost user confidence.

Upgrading Testing Facilities

With a budget of Rs. 780 crore, the MHI plans to modernise testing agencies, incorporating advanced technologies to support green mobility initiatives.

Demand Incentives to Boost EV Adoption

Demand incentives, a core component of PM E-DRIVE, focus on making EVs more affordable and accessible, particularly for commercial two- and three-wheelers with advanced batteries. EVs purchased by government departments, however, are not eligible for these incentives to avoid fund transfers within government entities. The scheme requires that eligible vehicles be registered under the Central Motor Vehicles Rules (CMVR), 1989.

To maximise the affordability of EVs, the scheme offers an incentive rate of Rs. 5,000 per kWh for e-2Ws and e-3Ws registered in FY 2024-25, dropping to Rs. 2,500 per kWh in FY 2025-26. Incentives are capped per vehicle or at 15% of the ex-factory price, whichever is lower, and only vehicles below a specified price threshold qualify.

E-Vouchers for Demand Incentives

To streamline the incentive process, the scheme introduces e-vouchers for EV buyers. At the time of purchase, the scheme portal generates an Aadhaar-verified e-voucher, which the buyer signs and submits to the dealer. This signed voucher allows dealers to apply for reimbursements through the PM E-DRIVE portal.

Conclusion

The PM E-DRIVE scheme represents a major step by the Indian government toward a cleaner, sustainable future for transportation. By supporting EV adoption and infrastructure, this initiative is set to reduce environmental pollution, enhance fuel security, and create substantial employment opportunities in manufacturing and charging infrastructure. This visionary program reflects India’s commitment to promoting sustainable and innovative mobility solutions for the future.