PM Electric Drive Subsidy Scheme to Boost EV Adoption in India

The central government announces the PM Electric Drive subsidy scheme with a fund allocation of Rs10,900 crore. Effective from October 1, 2024, to March 31, 2026, this initiative aims to accelerate the adoption of electric vehicles across various categories, including two-wheelers, three-wheelers, buses, and other emerging EV types.

New Delhi, Oct 1 (ANI) - The central government has unveiled the PM Electric Drive subsidy scheme, allocating a substantial Rs10,900 crore to accelerate electric vehicle (EV) adoption in India. The scheme will be implemented from tomorrow, October 1, 2024, to March 31, 2026, targeting various EV categories including electric two-wheelers (e-2Ws), electric three-wheelers (e-3Ws), electric buses, and other emerging EVs.

The PM E-DRIVE Scheme is a successor to the former FAME-I and FAME-II programs, which were initiated in 2015 and 2019 respectively. While FAME-I began with an outlay of Rs795 crore, extended to Rs895 crore, FAME-II was launched with Rs10,000 crore, later raised to Rs11,500 crore. This shift paved the way for the Electric Mobility Promotion Scheme 2024 (EMPS-2024), which rolled out in April 2024 with Rs778 crore for a six-month period, before being subsumed under the expansive PM E-DRIVE Scheme.

The PM E-DRIVE Scheme introduces three core components: demand incentives across various EV categories, grants for capital asset creation, and administrative provisions to support robust implementation. Demand incentives have been earmarked for e-2Ws, e-3Ws (including e-rickshaws and e-carts), e-ambulances, e-trucks, and other emerging EVs. Significant funds are also allocated for deploying e-buses, establishing a comprehensive charging infrastructure, and upgrading EV testing facilities.

During FY 2024-25, the scheme proposes a demand incentive of Rs5,000 per kWh for e-2Ws and e-3Ws, which will reduce to Rs2,500 per kWh in FY 2025-26, making EVs more affordable for consumers. Additionally, Rs7,171 crore has been allocated for creating capital assets, such as charging stations and testing facilities. States are also encouraged to provide supplementary incentives, including road tax waivers, concessional tolls, and permits exemptions.

The scheme is set to distribute Rs10,900 crore over two years, with Rs5,047 crore for FY 2024-25 and Rs5,853 crore for FY 2025-26. The ambitious goals include supporting 14,000 e-buses, establishing 2,000 charging stations, and upgrading EV testing facilities across India.

A Project Implementation and Sanctioning Committee (PISC) led by the Secretary of Heavy Industries will oversee the scheme's execution, ensuring smooth progress and addressing challenges. The committee will also have the authority to revise demand incentives and guidelines as needed. To qualify for incentives, EVs must be registered under the Central Motor Vehicle Rules and equipped with advanced battery technology.

(With inputs from agencies.)