PM E-DRIVE scheme extended till March 2028, e-two-wheelers, e-three-wheelers left out

The PM E-DRIVE scheme began in October 2024 with a sanctioned budget of Rs 10,900 crore.

The Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E‑DRIVE) scheme, which promotes electric mobility across India, has been granted a two-year extension, moving its closing date to March 31, 2028. This change was announced by the Ministry of Heavy Industries (MHI) as part of an updated implementation plan.

The scheme, which began in October 2024 with a sanctioned budget of Rs 10,900 crore, was originally scheduled to run until March 2026. The extended timeline will not be supported by new financial allocations. Instead, it will utilise the unspent portion of the original outlay.

Although most activities under the initiative will continue, the purchase incentives for electric two-wheelers and electric three-wheelers will still end on March 31, 2026, as initially planned. Authorities have clarified that the extension aims to provide additional time for slower-moving projects, such as the introduction of electric trucks and electric ambulances and the expansion of charging infrastructure, to reach their intended scale. The decision ensures that incomplete targets in specific segments can be met without exceeding the scheme's sanctioned budget.

"This is a fund-limited scheme. Total payout under the scheme shall be limited to the scheme outlay of Rs 10,900 crore. In case the funds for the scheme or its relevant sub-components are exhausted prior to the terminal date of the scheme, i.e. March 31, 2028, then the scheme or its relevant subcomponents will be closed accordingly, i.e. no further claims will be entertained. However, the terminal date for registered electric two-wheeler, registered electric-rickshaws and electric-cart and registered e-three-wheeler (L5) shall be March 31, 2026," MHI said in an official notification.

Of the total commitment of Rs 10,900 crore, a substantial Rs 3,679 crore is allocated as direct purchase subsidies to buyers of various electric vehicles (EVs), such as e‑two‑wheelers, e‑three‑wheelers (including e‑rickshaws), e‑ambulances, and e‑trucks. The scheme also includes funding for mass transit and infrastructure, allocating Rs 4,391 crore toward the acquisition of around 14,028 electric buses by state transport units and public agencies. Moreover, Rs 2,000 crore is earmarked for establishing public charging stations, including fast chargers, while Rs 780 crore is dedicated to upgrading vehicle-testing facilities. There is also a sum of Rs 50 crore for administrative and other expenses.

One of the scheme's key features is the e‑voucher system, which simplifies the claiming of subsidies. At the point of purchase, buyers receive an Aadhaar‑authenticated e‑voucher via SMS, which dealers process, enabling manufacturers to claim reimbursements through the official portal.

The PM E‑DRIVE initiative also promotes indigenous manufacturing through the Phased Manufacturing Programme, encouraging domestic value addition in EV production.

Since its implementation, the scheme has yielded tangible results. As of June 2025, the government reported that it has reached approximately 50% of its sales targets for e-two‑wheelers and e-three‑wheelers. Notably, in July 2025, the scheme's support for e-trucks debuted with a subsidy of up to Rs 9.6 lakh per vehicle, and state-owned SAIL committed to procuring 150 e‑trucks under this provision.