PM E-Drive scheme with ₹10,900 crore launched to promote EVs. Key takeaways
- The PM E-Drive scheme doesn't offer subsidies for electric cars or hybrid cars, which was available in the FAME scheme.
After months of speculation about the continuity of subsidies on electric vehicles and the supportive ecosystem to promote the electric mobility in India, the central government has finally come out with a new scheme dubbed as PM Electric Drive Revolution in Innovative Vehicle Enhancement or shortly, PM E-Drive. This scheme supersedes the erstwhile Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) scheme, which expired in March this year.
Also Read : India to launch FAME-III in two months to boost EV adoption. Check details
Under the PM E-Drive scheme, the central government has allocated a total of ₹10,900 crore for two years to provide subsidies on the purchase of electric two-wheelers, electric three-wheelers, electric buses and electric trucks as well as electric ambulances also. Besides that, the central government has also introduced the PM-eBus Sewa-Payment Security Mechanism scheme, which aims to roll out more than 38,000 electric buses across India till 2028-29 with an budgetary outlay of more than ₹3,435 crore.
Here are some key takeaways from the newly introduced PM E-Drive scheme and how it can be beneficial for you.
Under the PM E-Drive scheme, the central government has allocated a total of ₹10,900 crore. Under the Ministry of Heavy Industries (MHI), the PM E-Drive will provide subsidies or demand incentives worth ₹3,679 crore to incentivise electric two-wheelers, electric three-wheelers, electric ambulances, electric trucks and other EVs.
The PM E-Drive has no budgetary allocation to provide incentives for electric cars or hybrid cars. This means, the PM E-Drive will not support electric passenger vehicle buyers, which was a benefit offered by the FAME scheme to the EV buyers. However, an official statement by the government has stated that PM E-Drive scheme will support 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 electric buses.
Besides providing subsidies and demand incentives for electric two-wheelers, electric three-wheelers, electric ambulances, electric trucks and other EVs; the PM E-Drive also aims to boost the development of electric vehicle charging infrastructure across India. The scheme will support 88,500 electric vehicle charging sites across the country. The PM E-Drive proposes installation of 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for electric buses and 48,400 fast chargers for electric two-wheelers and three-wheelers with an budgetary outlay of ₹2,000 crore.
Under the PM E-Drive scheme, during the time of purchase of the electric vehicle, the dedicated portal will generate an Aadhaar authenticated electronic voucher for the EV buyer. He or she will receive a link to download the e-voucher in his or her registered mobile number. The buyer will sign the e-voucher and submit to the dealer to avail of demand incentives under the scheme. The dealer too will sign the e-voucher and upload on PM E-Drive's dedicated portal. The signed e-voucher will be sent to the buyer and dealer through an SMS. The auto manufacturers can claim reimbursement of demand incentives under the scheme by submitting the signed e-vouchers to the government. This means, the EV buyers will not get any direct subsidy in their respective bank accounts, but they will be able to buy the EV at a discounted price, while the OEM will claim the reimbursement from the government for giving the subsidy to the customer.
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