New Delhi: The government has officially launched the PM E-DRIVE scheme with a ₹10,900 crore budget to promote electric vehicles (EVs) and improve charging infrastructure. The scheme will run from October 1, 2023, to March 31, 2026, and will absorb the ongoing Electric Mobility Promotion Scheme (EMPS) 2024.
Under PM E-DRIVE, subsidies will be provided for various types of EVs like two- and three-wheelers, e-trucks, and e-ambulances. Electric buses will see the largest share of funding, with ₹4,391 crore set aside. Two-wheelers will get ₹1,772 crore in subsidies, while grants will be available to support charging infrastructure and upgrade testing facilities.
The scheme also encourages state governments to offer additional incentives such as road tax reductions, toll exemptions, and parking fee discounts to promote EV adoption further. A new Phased Manufacturing Programme (PMP) will push local production of EV components, with a requirement for chargers to have 50% domestic content by December 2024 to qualify for subsidies.
In response to earlier issues with subsidy misuse under the FAME scheme, the government has tightened regulations to ensure only eligible, domestically manufactured EVs benefit from the new scheme.
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