PM e-Drive Scheme

PM e-Drive Scheme Latest News

Recently, the Ministry of Heavy Industries has extended subsidies for electric two-wheelers till 31 July 2026, and for electric rikshaw and electric carts till 31 March 2028 under the PM E- DRIVE scheme.

About PM e-Drive Scheme

• The PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme is a flagship initiative launched in October 2024.
• It came into effect from October 1, 2024.
• Its primary aim is to accelerate the adoption of electric vehicles (EVs), establish charging infrastructure, and build a robust EV manufacturing ecosystem in the country.
• The key objective is to speed up the transition to EVs by offering upfront incentives for EV purchases and encouraging the development of charging infrastructure. 
• The PM E-DRIVE scheme to be implemented through the following key components:
  • Subsidies: Demand incentives to be provided for electric vehicles such as e-2 wheelers (e-2W), e-3 wheelers (e-3W), e-ambulances, e-trucks, and other emerging categories of EVs.
  • Grants for creation of capital assets: Funding to be provided for the acquisition of electric buses (e-buses), the establishment of a comprehensive network of charging stations, and the upgrading testing facilities of the Ministry of Heavy Industries (MHI).
  • Administration of the Scheme including IEC (Information, Education & Communication) activities and fee for project management agency (PMA).
• Under this, states are encouraged to offer additional fiscal and non-fiscal incentives, such as road tax waivers, reduced toll and parking fees, and permit exemptions, to further promote EV adoption. 
• The scheme will be overseen by an inter-ministerial body, the Project Implementation and Sanctioning Committee (PISC), chaired by the Secretary of Heavy Industries. 
  • The PISC will be responsible for monitoring progress and ensuring the scheme’s successful rollout.
  • It will also have the authority to address any challenges, including revising incentives, increasing the number of e-buses, and approving guidelines for testing agencies.
• To qualify for the PM E-DRIVE incentives, vehicles must be registered as “Motor Vehicles” under the Central Motor Vehicle Rules (CMVR) and equipped with advanced battery technology.

Source: LM

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