The Government of India has launched a new scheme called PM Electric Drive Revolution in Innovative Vehicle Enhancement, or PM E-DRIVE. It was notified on 29th September 2024 by the Ministry of Heavy Industries. The scheme is focused on promoting electric vehicles and encouraging cleaner transportation in the country. The PM E-DRIVE scheme introduces several new features and incentives to push the adoption of electric mobility in India.
One of the major highlights of the PM E-DRIVE scheme is the introduction of E-vouchers. These vouchers will allow buyers of electric vehicles to directly avail the demand incentive provided under the scheme. It simplifies the process of availing the subsidy by introducing Aadhaar-based face authentication. Along with that, the scheme requires users to upload a selfie to authenticate the sale. This digital process ensures transparency and efficiency in subsidy distribution.
Another important feature is the introduction of new vehicle categories under the scheme. The government has allocated ₹500 crore each to promote the sale of e-ambulances and e-trucks. This is the first time that e-ambulances have been given attention under such a scheme. The idea is to make patient transport more comfortable and environmentally friendly. E-trucks are also a focus because trucks are known to be one of the major contributors to air pollution. To get subsidies on e-trucks, it is now mandatory to submit a scrapping certificate. This certificate must be from scrapping centers approved by the Ministry of Road Transport and Highways. This move is aimed at encouraging the scrapping of old polluting trucks and promoting the purchase of electric ones.
An allocation of ₹780 crore has been made for upgrading vehicle testing agencies. These agencies play an important role in ensuring that electric vehicles meet quality and safety standards. By upgrading them, the government wants to support the growing demand for electric vehicles in India.
Under the PM E-DRIVE scheme, ₹4,391 crore has been allocated for the deployment of 14,028 e-buses. Initially, the scheme will focus on nine big cities where the population is more than 40 lakh. These cities include Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune. Special guidelines may be adopted for areas like hilly regions, northeastern states, island territories, and coastal regions. These areas may even see a different model of operation to support e-bus deployment. As of now, no city has been allocated e-buses under the scheme.
The government has also allocated ₹2,000 crore for the development of public charging infrastructure across India. This includes the state of Andhra Pradesh. The aim is to create a wide network of charging stations to support the rising number of electric vehicles.
Compared to the earlier FAME-II scheme, the PM E-DRIVE scheme has several differences. The total outlay for PM E-DRIVE is ₹10,900 crore, while FAME-II had ₹11,500 crore. PM E-DRIVE will be implemented over two years until 31st March 2026, whereas FAME-II will run for five years, from 2019 to 2024. New incentives like support for e-ambulances and e-trucks are introduced under PM E-DRIVE. Unlike FAME-II, which did not offer grants to vehicle testing agencies, PM E-DRIVE has provisioned ₹780 crore for their upgrade. Aadhaar-based face authentication and e-vouchers are also new features under PM E-DRIVE, ensuring better verification and transparency. Additionally, the scheme mandates scrapping certificates for e-truck subsidies and gives preference to states scrapping old ICE buses when allocating e-buses.
The PM E-DRIVE scheme aims to accelerate the adoption of electric vehicles and improve public transport while reducing pollution and supporting cleaner transportation alternatives across India.
