PM E-DRIVE SCHEME

The Ministry of Heavy Industries (MHI) has announced the deployment of electric buses in major cities (Bengaluru, Hyderabad, Delhi, Ahmedabad) under the PM E-DRIVE Scheme.

  • Aimed at promoting sustainable and clean urban mobility across India.

About PM E-DRIVE Scheme

  • Full form: PM Electric Drive Revolution in Innovative Vehicle Enhancement.
  • Outlay: ₹10,900 crore.
  • Duration: From October 2024 to March 2026.
  • Approved by: Union Cabinet.
  • Objective: Accelerate the adoption of electric vehicles (EVs), strengthen EV manufacturing under Aatmanirbhar Bharat, and develop charging infrastructure.

Key Features

  1. Target Beneficiaries

Eligible vehicles include:

  • Commercial/private electric two-wheelers (e-2Ws).
  • Electric three-wheelers (e-3Ws) with advanced batteries.
  • E-buses for public transport.
  • E-ambulances, e-trucks (with scrapping certificates).
  1. Demand Incentives
  • Up to 15% of ex-factory price or a fixed cap (whichever is lower).
  • Only EVs below a specified price threshold qualify.
  1. Charging Infrastructure

Goal: 72,300 public fast chargers across key cities and highways.

BHEL to develop a digital “Super App” for:

  • Booking charging slots.
  • Real-time charger availability.
  • Digital payments.
  1. Testing Infrastructure
  • ₹780 crore allocated to testing agencies under MHI.
  • Focus on advanced EV testing and certification capabilities.
  1. Eligibility Criteria
  • Only EVs with advanced batteries are eligible.
  • Must be registered under Central Motor Vehicles Rules (CMVR), 1989.
  • Govt-purchased EVs are ineligible (to avoid internal fund transfer).
  • Vehicles must be manufactured and registered between Oct 2024–Mar 2026

Context: Surge in EV Sales

  • Under schemes like EMPS and PM E-DRIVE, e-2W sales reached ~5.7 lakh units in FY 2024–25.
  • Supports India’s Net Zero 2070 goal.

Link to Previous Schemes

  • FAME-I (2015) and FAME-II (2019) laid the groundwork for EV adoption.
  • Focused mainly on 2W, 3W, hybrid/electric buses, and charging stations.
  • PM E-DRIVE expands scope to e-trucks, ambulances, and the charging infrastructure at scale.

Significance

  • Promotes clean urban transport, reduces dependence on fossil fuels.
  • Strengthens EV manufacturing ecosystem.
  • Aligns with commitments under Paris Agreement and Panchamrit targets.

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