The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a new scheme called the “PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme” to promote electric mobility across India. The scheme, proposed by the Ministry of Heavy Industries (MHI), will have a total outlay of ₹10,900 crore over two years. It is designed to accelerate the adoption of electric vehicles (EVs) and support the development of related infrastructure.
One of the key features of the scheme is the provision of subsidies and demand incentives worth ₹3,679 crore. These incentives will be used to promote the purchase of electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), ambulances (e-ambulances), trucks (e-trucks), and other emerging electric vehicles. The scheme aims to support the sale of 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses, helping to make electric vehicles more accessible and affordable.
To streamline the process of purchasing EVs, MHI is introducing e-vouchers. When an EV is purchased, the buyer will receive an Aadhaar-authenticated e-voucher via the scheme’s online portal. This voucher will be sent to the buyer’s registered mobile number. The buyer and dealer will then sign the voucher, and it will be uploaded to the PM E-DRIVE portal. This process will ensure that the original equipment manufacturer (OEM) can claim reimbursement for the incentives.
The scheme also focuses on promoting electric ambulances as part of a broader push towards integrating EVs into the healthcare sector. A total of ₹500 crore has been allocated for the deployment of e-ambulances, which will provide more comfortable patient transport. Performance and safety standards for these ambulances will be developed in consultation with the Ministry of Health and Family Welfare (MoHFW), the Ministry of Road Transport and Highways (MoRTH), and other relevant stakeholders.
Additionally, ₹4,391 crore has been set aside for the procurement of 14,028 e-buses by state transport undertakings (STUs) and public transport agencies. This initiative will prioritize nine cities with populations of over 40 lakh, including Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bengaluru, Pune, and Hyderabad. The scheme will also support intercity and interstate e-buses, giving preference to those procured after scrapping old buses through MoRTH-approved vehicle scrapping centres.
Trucks, which are significant contributors to air pollution, are also included in the scheme. An allocation of ₹500 crore will be used to incentivize the purchase of e-trucks. The incentives will be given to those who can provide a scrapping certificate from an approved vehicle scrapping centre, following the MoRTH Vehicle Scrapping Scheme guidelines.
To address the issue of “range anxiety,” the scheme plans to install public charging stations across cities with high EV penetration and along selected highways. A total of ₹2,000 crore will be allocated for setting up 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for e-buses, and 48,400 fast chargers for e-2Ws and e-3Ws.
Recognizing the rapid growth of the EV ecosystem, the scheme also provides ₹780 crore for the modernization of vehicle testing agencies under the Ministry of Heavy Industries. These agencies will be upgraded to handle new and emerging technologies in green mobility.
The PM E-DRIVE scheme aims to encourage the adoption of electric vehicles by offering upfront incentives and facilitating the establishment of essential charging infrastructure. It supports the government’s goal of promoting a competitive and resilient EV manufacturing industry under the Aatmanirbhar Bharat initiative. The phased manufacturing programme (PMP) included in the scheme will further encourage domestic production and strengthen the EV supply chain.
By promoting sustainable transportation solutions, the scheme aims to reduce environmental pollution and improve air quality. It is also expected to create significant employment opportunities across the EV manufacturing and infrastructure sectors. This comprehensive initiative from the Government of India will spur investment in the electric vehicle sector, contributing to a greener future for the country.
