Modi Cabinet Approves Rs. 10,900 Cr PM E-DRIVE Scheme for EVs

The Union Cabinet has approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, with a budget of Rs 10,900 crore over two years. This landmark initiative promotes electric vehicles, offering demand incentives and e-vouchers for buyers. It also introduces e-ambulances, incentivizes e-trucks after scrapping, and strengthens vehicle testing infrastructure, advancing India’s electric mobility landscape.

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the Ministry of Heavy Industries’ (MHI) proposal to implement the 'PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme' to promote electric mobility across India.

Key Points of PM E-DRIVE Scheme

• PM E-DRIVE Scheme: A Rs 10,900 Crore Boost for Electric Mobility

• Streamlined EV Purchases with E-Vouchers Under PM E-DRIVE

• Introduction of Electric Ambulances: A Greener Healthcare Solution

• Incentives for E-Truck Buyers After Scrapping Old Vehicles

• Strengthening Vehicle Testing Infrastructure with Rs 780 Crore Allocation

• Advancing Electric Vehicle Mobility Across India

The scheme has a budget of Rs 10,900 crore over two years and includes the following key components:

• Subsidies/Demand incentives worth Rs 3,679 crore will be provided to promote electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), e-ambulances, e-trucks, and other emerging EVs. The scheme targets the support of 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.

• To ease access to demand incentives, MHI will introduce Aadhaar-authenticated e-vouchers for EV buyers, generated through the scheme portal at the time of purchase. These vouchers will be signed by the buyer and submitted to the dealer, who will then upload them to the PM E-DRIVE portal. A signed copy will also be sent to the buyer and dealer via SMS, and the e-voucher will be required for OEMs to claim reimbursement.

• A sum of Rs 500 crore is earmarked for the deployment of e-ambulances, a new initiative to enhance patient transport. Performance and safety standards will be developed in collaboration with the Ministry of Health and Family Welfare (MoHFW), Ministry of Road Transport and Highways (MoRTH), and other stakeholders.

• Rs 4,391 crore will be allocated for the procurement of 14,028 e-buses for public transport agencies. Demand aggregation will be managed by CESL in nine cities with populations exceeding 40 lakh, including Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, and others. Intercity and interstate e-buses will also be promoted in collaboration with states, with preference given to cities/states scrapping old buses in accordance with MoRTH guidelines.

• To reduce air pollution, the scheme promotes the deployment of e-trucks with Rs 500 crore allocated for incentives. These incentives will apply to individuals with scrapping certificates from MoRTH-approved vehicle scrapping centres.

• The scheme aims to address EV range anxiety by supporting the installation of 22,100 fast chargers for e-4Ws, 1,800 for e-buses, and 48,400 for e-2Ws/3Ws, with an outlay of Rs 2,000 crore. These chargers will be installed in cities with high EV penetration and along selected highways.

• MHI test agencies will be upgraded with an outlay of Rs 780 crore to handle emerging green mobility technologies.

The PM E-DRIVE scheme’s primary goal is to accelerate the adoption of EVs by offering upfront purchase incentives and building essential charging infrastructure. It aims to reduce the environmental impact of transportation, improve air quality, and bolster the EV manufacturing industry through the phased manufacturing program (PMP), which supports domestic production and a robust EV supply chain, fostering Aatmanirbhar Bharat.

This initiative will help address concerns related to pollution and fuel security, promoting sustainable transport solutions, spurring investment in the EV sector, and generating significant employment through both manufacturing and charging infrastructure development.