What is PM E Drive Scheme
The PM electric drive scheme is introduced with the thought of speeding up and simplifying electric vehicle adoption in India. This scheme targets to support various segments, including electric two-wheelers, three-wheelers, electric buses, electric ambulances, e-trucks and other emerging electric vehicles.
The Ministry of Heavy Industries (MHI) proposal to implement the “PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme” to promote electric mobility in the nation has been approved by the Union Cabinet, which is headed by Prime Minister Shri Narendra Modi.
The PM E drive will cost Rs 10,900 crore over the course of two years. This will support the immediate growth of EV infrastructure and provide additional incentives to potential EV buyers. Unfortunately electric cars are not included in this phase.
Table of Contents
Key Objectives of the PM E Drive Scheme:
- Subsidize the cost of electric two- and three-wheelers, e-ambulances, e-trucks.
- Support the installation of a wide network of fast-charging stations.
- Introduce demand aggregation mechanisms for electric buses in public transport.
- The program will encourage the use of e-trucks across the nation.
- Foster the development of domestic EV technologies.
- To reduce transportation’s adverse environmental impacts and enhance air quality, promotes EVs.
Why PM E-Drive Replaces FAME 2
The FAME 2 scheme ((Faster Adoption and Manufacturing of Electric Vehicles) is set to expire in March 2024, which was launched in 2019, promoting electric vehicles in India, supporting the purchase of 7,000 electric buses, 5 lakh electric three-wheelers and 10 lakh two-wheelers. So the PM E Drive is going to take over and providing more extended and improved focus on promoting electric transportation.
Key Differences Between FAME 2 and PM E-Drive:
| Feature | FAME 2 | PM E-Drive |
| Total Outlay | ₹10,000 crore | ₹10,900 crore |
| Supported Vehicles | 2W, 3W, 4W, Buses | 2W, 3W, Buses, Ambulances |
| Scheme Duration | 2019-2024 | 2024-2026 |
| Charging Infrastructure | 2,800 charging stations | Over 88,500 charging sites |
Subsidies and Key Beneficiaries
The PM E Drive Scheme / PM Electric Drive Scheme have provided subsidies/incentives to purchase various electric vehicles. Government Of India allocated 3,679 crore rupees as subsidy amount to purchase electric two-wheelers (e-2Ws) , electric three-wheelers (e-3Ws), e-ambulances, e-trucks and other upcoming electric vehicle models under this scheme. The scheme targets to support 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers and 14,028 electric buses.
Subsidies Distribution:
| Vehicle Category | Number of Vehicles Supported | Subsidy Outlay |
| Electric 2-Wheelers | 24.79 lakh | ₹1,500 crore |
| Electric 3-Wheelers | 3.16 lakh | ₹800 crore |
| Electric Buses | 14,028 | ₹4,391 crore |
| Electric Trucks | NA | ₹500 crore |
Focus on Electric Two-Wheelers and Three-Wheelers
In rural and semi-urban areas of India, people mostly use the two-wheelers and three-wheelers for their daily commute and the vechiles are in large numbers. So PM E Drive scheme focuses more on electric two-wheelers and electric three-wheelers. This scheme is aimed at to provide incentives on demand basis for these electric vechiles to lower the initial costs, making them more accessible to the public.
Amounts of Rs. 4,391 crore have been allocated for STUs and public transportation agencies to purchase 14,028 e-buses. In the nine cities with a population of more than 40 lakh, namely Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune, and Hyderabad, CESL will handle demand aggregation. In consultation with the states, intercity and interstate e-buses will also be encouraged.
Electric Buses and PM-eBus Sewa Scheme
Another major highlight is the introduction of the PM-eBus Sewa-Payment Security Mechanism. A funding of 3,435 crore allocated under this scheme to roll out over 38000 electric buses by 2028-2029. It primarily focuses on electrifying public transport in metropolitan areas in the country and will target major cities with populations more than 5 million such as Delhi, Mumbai, Kolkata, and Chennai. This great initiative also make sure that smooth operation of electric buses for up to 12 years from their date of deployment.
Charging Infrastructure Boost
A strong EV charging infrastructure is essential for the widespread adoption of electric vehicles for electric vehicle buyers to reduce the anxiety of the charging station availability issue on the highways. This scheme addresses installation of electric vehicle public charging stations(EVPCS).
These EVPCS will be installed on selected highways and also in selected cities. Under the PM E Drive Scheme, the government will establish a total of 88,500 electric vehicle charging sites across India. Among these, 22,100 fast chargers will be for electric four-wheelers, while 1,800 fast chargers will be for electric buses. A total of 48,400 fast chargers will support electric two-wheelers and three-wheelers.
Charging Infrastructure Plan
| Category | Number of Fast Chargers |
| Four-Wheelers | 22,100 |
| Electric Buses | 1,800 |
| Two and Three-Wheelers | 48,400 |
A total outlay of 2,000 crore rupees allocated to installation of EVPCS under PM E-Drive scheme / PM electric drive scheme.
Supporting Emerging Technologies
The Government has separately allocated 780 crore rupees to upgrade and modernize the test agencies under the Ministry of Heavy Industries, to addresses cutting edge technologies in order to promote green mobility. This budget helps India stays at the forefront of EV innovation by developing indigenous technologies and improving the domestic supply chains.
Challenges in EV Adoption
India is still facing a number of challenges in its adoption of electric vehicles, even with the encouraging backing of initiatives such as PM E Drive scheme.
- Affordability: For the typical user, electric vehicles still have a high initial cost.
- Infrastructure: There aren’t many charging stations yet, especially in rural locations.
- Consumer Awareness: Many consumers are still not aware of the long-term benefits of switching to electric vehicles.
Supporting Phased Manufacturing Program
By encouraging effective, robust and affordable EV manufacturing sector, this scheme promotes Aatmanirbhar Bharat. Phased manufacturing program (PMP), which promotes local manufacture and improves the EV supply chain, will be implemented to achieve this.
E-Voucher System: Making EV Ownership Easier
A unique feature of the PM electric drive scheme is the introduction of an e-voucher system to simply the process of availing demand incentives. The Ministry of Heavy Industries (MHI) is rolling out this system, which provides buyers with Aadhaar authenticated e-vouchers at the time of purchasing electric vehicle. This voucher is generated directly from the scheme’s portal and sent as a downloadable link to the buyer’s registered mobile number.
The e-voucher provides seamless experience, ease of access and transparency for EV buyers. This system simplifies the process of receiving government subsidies and allowing the benefits to reach customers directly.
While buying EV, the scheme portal generate and Aadhaar verified e-voucher. Buyer will receive a downloadable link to his registered mobile number. This will be signed by buyer and submitted to dealer to avail demand incentives under the scheme.
After e-voucher will be signed by dealer and uploaded on the PM E-Drive portal. Buyer and dealer will receive a signed e-voucher through a SMS. Signed e-voucher is essential for the OEM to claim the demand incentives.
Conclusion: Moving Towards a Greener Future
With the focus now on electric two-wheelers, three-wheelers, and buses, the Indian government is laying the groundwork for an electric mobility revolution, set to unfold over the next decade.
The PM electric drive scheme is an important step forward in India’s journey towards sustainable transportation. By offering subsidies on various electric vechiles and investing in critical charging infrastructure, the scheme addresses key issues in the adoption of electric vechiles(EVs). It offers cleaner, greener future for India’s public and priavte transport sectors when combined with PM-Ebus Sewa initiative.
Now that electric buses, three-wheelers, and two-wheelers are the main focus, the Indian government is preparing the way for an electric mobility revolution that will happen over the course of the next ten years.
FAQ : PM E Drive Questions
1Q : What is the PM-E drive scheme?
A: This PM E drive scheme provides support for rapid development of adopting electric vehicles, by providing the subsidy for purchasing EVs. Main objective of this is to introduce EVs in public transportation by providing subsidies.
2Q: What is total outlay of PM E-drive scheme?
A: The PM e drive is approved by cabinet committee of 10900 crore rupees on Sept 11 2024.
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