New Delhi – The Government of India has launched the ₹10,900 crore PM E-Drive Scheme to bolster electric vehicle (EV) adoption, enhance charging infrastructure, and foster domestic manufacturing, aligning with the nation’s environmental and energy goals. The scheme will remain in effect until March 31, 2026.
Driving Faster EV Adoption
The scheme aims to make EVs more accessible and affordable for Indian consumers through demand incentives that reduce upfront costs. This initiative seeks to:
- Accelerate EV uptake across various segments, including two-wheelers (e-2Ws), three-wheelers (e-3Ws), and e-buses.
- Develop a robust charging infrastructure, ensuring seamless access to charging stations and boosting confidence among EV users.
- Strengthen the EV manufacturing ecosystem, reducing import dependence and fostering sustainable domestic production.
- Prioritize public transport electrification, making eco-friendly travel accessible to millions and reducing emissions.
- Reduce India’s reliance on fossil fuels, contributing to lower carbon footprints and a cleaner environment.
Consumer & Industry Benefits
The scheme offers direct financial incentives to both consumers and manufacturers:
For Consumers:
- Demand incentives lower initial purchase costs, making EVs more attractive to buyers.
- A well-developed charging network alleviates range anxiety, making long-distance EV travel feasible.
For Manufacturers:
- Demand incentives drive higher sales and production, encouraging manufacturers to scale up operations.
- The Phased Manufacturing Programme (PMP) supports the localization of EV components, boosting domestic capabilities and reducing dependency on imports.
Key Incentives & Investments
To ensure widespread EV adoption, the government has structured financial incentives strategically:
- Financial Support: Demand incentives of ₹5,000 per kWh (FY 2024-25) and ₹2,500 per kWh (FY 2025-26) for e-2Ws and e-3Ws, capped at 15% of the ex-factory price.
- E-Bus Expansion: ₹4,391 crore allocated for the deployment of 14,028 e-buses nationwide.
- Scrappage Priority: Cities and states procuring new e-buses after scrapping old State Transport Undertaking (STU) buses via authorized Registered Vehicle Scrapping Facilities (RVSFs) receive preference for grants.
Monitoring & Implementation
To ensure efficient execution and impact maximization, the government has established a Project Implementation and Sanctioning Committee (PISC). This inter-ministerial empowered committee, chaired by the Secretary of Heavy Industries, oversees the scheme’s:
- Overall monitoring and policy adjustments.
- Approval and allocation of incentives and funding.
- Resolution of challenges faced during implementation.
Economic Growth & Job Creation
The PM E-Drive scheme is set to catalyze job creation and strengthen India’s EV industry by:
- Boosting domestic EV manufacturing, with mandatory localization of components under PMP.
- Expanding the charging infrastructure sector, creating employment opportunities in installation, maintenance, and operations.
- Supporting local manufacturers, with a requirement of at least 50% domestic value addition (DVA) in EV charger production.
This initiative marks a significant milestone in India’s transition toward sustainable transportation, fostering economic growth while making electric mobility mainstream. The scheme’s details were officially shared by the Minister of State for Steel and Heavy Industries, Bhupathiraju Srinivasa Varma, in a written response in the Lok Sabha today.
