The government on Monday officially notified the PM e-Drive scheme, detailing an outlay of Rs 10,900 crore. According to the gazette notification, the scheme will be implemented from October 1, 2024 to March 31, 2026. Its primary goal is to accelerate the adoption of electric vehicles (EVs), establish charging infrastructure and promote the growth of EV manufacturing. Ecosystem in the country.
The PM e-Drive scheme will also subsume the existing Electric Mobility Promotion Scheme (EMPS), 2024. “The number of vehicles and expenditure under EMPS, 2024 will be included in the PM e-Drive scheme,” the notification said.
The scheme provides subsidies for electric two-wheelers and three-wheelers, e-ambulances, e-trucks and other emerging EV categories. Additionally, it provides grants for creation of capital assets like e-buses, development of charging station network and upgradation of testing agencies identified under the programme.
However, the central government’s efforts to promote e-mobility will require additional support from state governments. “States should provide a range of fiscal and non-fiscal incentives,” the notification stressed, suggesting measures such as permit waivers, concessional road taxes, toll and parking fee waivers and lower registration fees as possible incentives. Has gone.
Overall, rebates worth Rs 8,070 crore have been earmarked for EVs. Buses get the highest share of Rs 4,391 crore, followed by two-wheelers at Rs 1,772 crore. A Phased Manufacturing Program (PMP) has also been notified under PM e-Drive to support localization of EV components. To be eligible for rebate under the scheme, EV chargers will need to have a minimum 50% domestic value addition (DVA) from December 1, 2024.
The notification also said that financial assistance for electric two-wheelers will be halved to Rs 5,000 per vehicle by 2025-26. For electric three-wheelers, the subsidy will be Rs 25,000 per vehicle.
PM e-Drive, like its predecessor Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, aims to subsidize locally manufactured vehicles. But the earlier iteration was marred by instances of companies selling imported vehicles on a large scale and availing subsidies unfairly. The government has attempted to address these concerns through stricter scrutiny in the new scheme.
 across India.){kind=link}