Cabinet approves Rs 10,900-crore PM E-DRIVE electric mobility scheme

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday gave the nod to a proposal by the Ministry of Heavy Industries (MHI) for implementing the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme aimed at promoting electric mobility in the country. The scheme has an outlay of Rs 10,900 crore spanning two years, according to an official statement. 

Subsidies and demand incentives worth Rs 3,679 crore have been provided to incentivise e-two-wheelers, e-three-wheelers, e-ambulances, e-trucks, and other emerging EVs. It will support 24.79 lakh e-two-wheelers, 3.16 lakh e-three-wheelers, and 14,028 e-buses, the statement said. 

The Heavy Industries Ministry is introducing e-vouchers for EV buyers to avail demand incentives under the scheme. At the time of purchase of the EV, the scheme portal will generate Aadhaar authenticated e-vouchers for buyers. A link to download the e-voucher will be sent to the buyer's registered mobile number. This e-voucher will be signed by the buyer and submitted to the dealer to avail demand incentives under the scheme. It will also be signed by the dealer and uploaded on the PM E-DRIVE portal. The signed e-voucher will be sent to the buyer and dealer through an SMS. This signed e-voucher will be essential for original equipment manufacturers (OEMs) to claim reimbursement of demand incentives under the scheme.

The scheme allocates Rs 500 crore for the deployment of e-ambulances. This is a new initiative of Govt of India to promote the use of e-ambulances for the comfortable transport of patients. The performance and safety standards of e-ambulances will be formulated in consultation with MoHFW, MoRTH, and other relevant stakeholders.

A sum of Rs 4,391 crore has been provided for the procurement of 14,028 e-buses by STUs/public transport agencies. The demand aggregation will be done by CESL in the nine cities with more than 40 lakh population namely Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune, and Hyderabad. Intercity and Interstate e-buses will also be supported in consultation with states.

While allocating buses to cities/states, preference will be given to those number of buses of cities/states, which are being procured after scrapping old STU buses, through authorised scrapping centres (RVSFs) following the MoRTH Vehicle Scrapping Scheme guidelines.

Trucks are major contributors to air pollution. The scheme will promote the deployment of e-trucks in the country. A sum of Rs 500 crore has been allocated for incentivising e-trucks. Incentives will be given to those who have a scrapping certificate from MoRTH-approved vehicles scrapping centres (RVSF).

Welcoming the Cabinet’s decisions to promote electric mobility in the country, Shailesh Chandra, President of industry body SIAM, said the PM e-DRIVE scheme is a progressive step that underscores the firm commitment towards promoting sustainable mobility.

"It will undoubtedly help accelerate the adoption of electric vehicles (EVs) across the country, making clean and green transportation more accessible to all. This forward-thinking initiative reflects the Government's unwavering support for India's transition to electric mobility, fostering innovation and investment within the sector. We believe this scheme will not only enhance the growth of the EV ecosystem but also strengthen India's leadership in the global movement towards environmental sustainability," said SIAM's Chandra. 

In a separate development, the Cabinet also gave the nod to the PM-eBus Sewa-Payment Security Mechanism (PSM) scheme for the procurement and operation of e-buses by Public Transport Authorities, involving the rollout of more than 38,000 e-buses over a five-year period from FY25 to FY29 with an outlay of over Rs 3,435 crore.