In a recent disclosure, the Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, confirmed that no subsidies have been disbursed under the PM E-DRIVE Scheme for the procurement of electric buses, ambulances, and e-trucks as of now. The update was shared in a written reply to the Rajya Sabha today.
The PM E-DRIVE Scheme, aimed at promoting electric vehicle adoption, remains inactive in terms of financial support to state governments. However, efforts to bolster environmental sustainability are evident through the Vehicle Scrapping Policy, which seeks to phase out older, unfit, and polluting vehicles.
Introduced by the Ministry of Road Transport and Highways, the Vehicle Scrapping Policy incorporates a system of incentives and disincentives to create an ecosystem for retiring outdated vehicles. A key feature of this policy is the concession in motor vehicle tax for vehicles registered using a “Certificate of Deposit” issued upon scrapping an old vehicle.
As per GSR Notification 720 (E), dated October 5, 2021, non-transport vehicles are eligible for a tax concession of up to 25%, while transport vehicles can avail up to 15%. These concessions are applicable for eight years for transport vehicles and 15 years for non-transport vehicles from the date of registration.
The announcement highlights the government’s commitment to reducing vehicular pollution, though it raises questions about the pace of implementation of flagship initiatives like the PM E-DRIVE Scheme. With growing emphasis on green mobility, stakeholders anticipate further updates on subsidy disbursements and progress under the scheme.
