The government has introduced a new scheme to accelerate the adoption of electric vehicles (EVs) across the country. The initiative, called PM Electric Drive, aims to encourage the use of electric two-wheelers, three-wheelers, ambulances, buses, and other emerging categories of EVs. The focus of the scheme is on making EVs more affordable, promoting the development of charging infrastructure, and enhancing the manufacturing ecosystem for electric vehicles in India.
The plan builds on earlier efforts, including the FAME-I and FAME-II schemes, which helped boost the market for electric and hybrid vehicles. These programs laid the groundwork for the large-scale adoption of EVs, and the latest initiative is designed to take this progress further. Under PM Electric Drive, subsidies will be provided to reduce the cost of electric two-wheelers, electric three-wheelers, and electric buses. The goal is to make these vehicles more accessible and to provide significant support for public transport options.
To ensure the success of this scheme, the government has allocated a budget of ₹10,900 crore, which will be spent over the next two years. The subsidies offered will help lower the acquisition costs for consumers and businesses alike. For instance, individual buyers of electric two-wheelers and three-wheelers can receive financial support to cover part of the purchase price. Public transport providers will benefit from subsidies for electric buses, while support will also be given to companies that invest in charging infrastructure.
A key aspect of the initiative is the installation of charging stations across the country. With a budget of ₹2,000 crore, the plan includes setting up charging facilities not only within city limits but also along inter-city and inter-state highways. This will allow electric vehicle users to travel long distances without worrying about running out of power. The Ministry of Heavy Industries, which is responsible for managing the scheme, will work closely with other government bodies, state authorities, and public sector companies to ensure these charging points are established in strategic locations.
The scheme also focuses on upgrading the country’s testing agencies to support the increased demand for electric vehicle testing. A sum of ₹780 crore has been set aside to improve testing facilities, ensuring that they are equipped to handle the growing number of electric vehicles in the market. These agencies play a vital role in certifying vehicles and ensuring they meet national safety and performance standards.
The scheme emphasizes collaboration between the central and state governments to provide additional incentives for EV buyers. These incentives could include tax breaks, exemptions from road tolls, and lower parking fees. By encouraging state governments to support the initiative, the central government hopes to create a favorable environment for the widespread adoption of electric vehicles.
The PM Electric Drive initiative is a comprehensive approach to fostering electric mobility in India. By offering financial incentives, investing in infrastructure, and upgrading testing facilities, the scheme aims to make electric vehicles a viable and attractive option for consumers and businesses alike. With this support, the government expects to see a rapid increase in the number of electric vehicles on the roads, which will contribute to reducing pollution and improving energy efficiency across the country.
