PM E-DRIVE Scheme Focuses on EV Incentives, Charging Infrastructure

The Government of India has notified ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme' on 29.09.2024 to provide impetus to the green mobility & development of EV manufacturing eco-system in the country. The scheme has an outlay of  ₹10,900 crore over a period of two years from 01.04.2024 to 31.03.2026. The Electric Mobility Promotion Scheme (EMPS) 2024 implemented for the period of six months from 01.04.2024 to 30.09.2024, is subsumed in PM E-DRIVE scheme.

Salient features of PM E-DRIVE scheme:

i.    Introduction of E- Vouchers: - The Ministry of Heavy Industry (MHI) has introduced E-vouchers for Electric vehicle buyer to avail the demand incentive under the scheme.

ii.   Introduction of new vehicle segments: - An allocation ₹500 crore each has been done for deployment of e-ambulances and e-trucks under the scheme. This is new initiative  to promote the use of e-ambulances for a comfortable patient transport. Similarly, e-trucks have also been introduced under the scheme.

iii.  Upgradation of testing agencies: ₹780 Crore has been earmarked for upgradation of vehicles testing agencies.
The scheme has following three components:

i.     Subsidies: ₹3,679 crore as demand incentives for e-2W, e-3W, e-ambulances, e-trucks & other new emerging EV categories.

ii.    Grants: ₹7,171 crore for creation of capital assets i.e., e-buses, establishment of network of charging stations & upgradation of vehicle testing agencies identified under this scheme.

iii.  Administration of Scheme including IEC (Information, Education & Communication) activities and fee for project management agency (PMA).

The PM E-DRIVE scheme aims to boost demand for electric vehicles (EVs) through various incentives detailed below:

i.  Demand Incentives: These incentives directly reduce the upfront cost of EVs for consumers at the point of purchase. The government reimburses the incentive amount to the Original Equipment Manufacturers (OEMs).

ii.   Financial Support for Charging Infrastructure: The scheme allocates ₹2,000 crore for establishing public charging infrastructure for various vehicle categories.

iii.  Grants for Capital Assets: The scheme has provisions of ₹4,391 crore as grants to support deployment of 14,028 e-buses and ₹780 crore as grants for the upgradation of vehicle testing agencies identified under the scheme.

Yes, there is mechanisms in place to monitor and assess the implementation of the PM E-DRIVE scheme. Project Implementation and Sanctioning Committee (PISC), an inter-ministerial empowered committee, headed by the Secretary of Heavy Industries, is constituted for overall monitoring, sanctioning, and implementation of the PM E-DRIVE scheme. This committee is also responsible for removing any obstacles or difficulties that may arise during implementation.