Union Cabinet Clears PM E-Drive Scheme with Rs 10,900 Crore Funding to Boost EV Adoption

The Union Cabinet has approved the PM E-Drive Scheme with a financial outlay of Rs 10,900 crore for two years to accelerate the adoption of electric vehicles (EVs) in India. The scheme aims to promote the use of battery-operated vehicles, including two-wheelers, three-wheelers, e-ambulances, e-trucks, and other emerging EVs. This new initiative is intended to replace the earlier Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) Scheme, which was launched in April 2015.

Under the PM Electric Drive Resolution in Innovative Vehicle Enhancement (PME-DRIVE) Scheme, subsidies worth Rs 3,679 crore will be offered to incentivize the purchase of electric two-wheelers, three-wheelers, ambulances, and trucks. The scheme also includes a provision for 100% support for charging infrastructure across 88,500 sites. This investment is in addition to the Production-Linked Incentive (PLI) schemes for the auto and auto components sectors.

The government has allocated Rs 4,391 crore to acquire 14,028 e-buses through state transport undertakings and public transport agencies. The PM-eBus Sewa Payment Security Mechanism will receive Rs 3,435 crore to support the battery-run bus market. Moreover, Rs 500 crore has been allocated for the deployment of e-ambulances, and another Rs 500 crore is earmarked to incentivize the adoption of e-trucks.

Ashwini Vaishnaw, Minister for Information and Broadcasting, highlighted that the scheme introduces a new initiative to allocate e-ambulances for more comfortable patient transport. However, the policy does not provide any incentives for electric cars or hybrid vehicles.

The PM E-Drive Scheme replaces the FAME II Scheme, which subsidized 13,21,800 EVs with a total outlay of Rs 11,500 crore until its expiration on March 31, 2024. The newly announced scheme will now continue the government’s commitment to promoting electric mobility across the country.