Government Launches PM E-DRIVE Scheme to Accelerate EV Adoption

The Indian government has introduced the PM E-DRIVE Scheme, with a budget of Rs 10,900 crore, to promote electric vehicle adoption, enhance charging infrastructure, and develop an EV manufacturing ecosystem. The scheme, starting in October 2024, subsumes the existing EMPS-2024 and offers various subsidies and incentives for electric vehicles.

The Indian government has introduced the PM E-DRIVE Scheme, allocating Rs 10,900 crore to accelerate the adoption of electric vehicles, improve charging infrastructure, and develop a robust EV manufacturing ecosystem in the country.

Launched on Tuesday, the scheme will be implemented from October 1, 2024, to March 31, 2026, and amalgamates the ongoing EMPS-2024. The PM E-DRIVE offers substantial subsidies for electric two-wheelers, which are determined based on battery power. Initially, the subsidy is set at Rs 5,000 per kilowatt hour but will not extend beyond Rs 10,000 annually. This incentive will be halved in the second year to Rs 2,500 per kilowatt hour.

At the launch event, Ministry of Heavy Industries Additional Secretary Hanif Qureshi revealed plans to introduce a mobile app for e-voucher generation, making subsidy availing seamless. A noteworthy allocation of Rs 780 crore is earmarked for upgrading testing facilities. The scheme also provides demand incentives worth Rs 3,679 crore for e-2Ws, e-3Ws, e-ambulances, and e-trucks, promoting the deployment of 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses. Furthermore, Rs 2,000 crore is dedicated to installing public charging stations, addressing range anxiety for EV buyers.