Cabinet approves PM E-Drive scheme with Rs 10,900 crore outlay

Ashwini Vaishnaw, Union Minister of Information and Broadcasting

The Union Cabinet, on September 11, approved the PM E-Drive Scheme with an outlay of Rs 10,900 crore for two years with an aim to boost adoption of electric vehicles (EVs) in India. The new scheme offers subsidies worth Rs 3,679 crore to incentivise adoption of battery-driven two and three-wheelers, ambulances, trucks and other emerging electric vehicles (EVs).

Under the PM Electric Drive Revolution In Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, 100 percent support will be given for charging infrastructure at 88,500 sites, Information and Broadcasting Minister Ashwini Vaishnaw said in a media briefing.  This investment is over and above the PLI schemes for auto and auto component sectors, the minister said.

"The major components of the scheme are as under: Subsidies/Demand incentives worth Rs 3,679 crore have been provided to incentivize e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs. The scheme will support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses," as per government statement on the decision.

Furthermore, Rs 4,391 crore has also been provided for procurement of 14,028 e-buses by state transport undertakings and public transport agencies. Under this scheme, there is also PM-eBus Sewa Payment Security Mechanism of Rs 3,435 crore for the battery-run bus market. Another Rs 500 crore has been earmarked for the deployment of e-ambulances. A sum of Rs 500 crore has been provided for incentivising adoption of e-trucks.

The allocation on e-ambulances is a new initiative of the government for a comfortable patient transport, according to the minister. However, he clarified that this newly introduced policy doesn't provide any incentives for electric cars and will also not consider hybrid vehicles.

The PM E-Drive Scheme replaces the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) Scheme, which was launched in April 2015 and ran for nine years in two different editions. During the second edition of this scheme, which was valid until March 31, 2024, the government subsidised 13,21,800 EVs with a total outlay of Rs 11,500 crore.

The FAMEII scheme was later replaced by the Rs 500-crore Electric Mobility Promotion Scheme 2024, which was valid for four months and got extended till September 31, 2024.

Shailesh Chandra, President, Society of Indian Automobile Manufacturers (SIAM) stated that all these announcements will help accelerate the adoption of electric vehicles (EVs) across the country, making clean and green transportation more "accessible" to all.

"This forward-thinking initiative reflects the government's unwavering support for India's transition to electric mobility, fostering innovation and investment within the sector. We believe this scheme will not only enhance the growth of the EV ecosystem but also strengthen India's leadership in the global movement towards environmental sustainability," said Chandra, who is also Managing Director, Tata Motors Passenger Vehicles Ltd & Tata Passenger Electric Mobility Ltd.