National September 25, 2024: The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, had recently approved the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ proposed by the Ministry of Heavy Industries (MHI). The scheme, with a budget of Rs 10,900 crore over two years, aims to accelerate the adoption of electric vehicles (EVs) across India through various incentives and infrastructure enhancements. EV Story presents the key components of the scheme and responses from the industry.
Key Components of the PM E-DRIVE Scheme:
- Subsidies/Demand Incentives: A total of Rs 3,679 crore will be allocated to incentivize electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), e-ambulances, e-trucks, and other emerging EVs. The scheme supports the purchase of 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.
- E-Ambulances: A new initiative with Rs 500 crore allocated for deploying e-ambulances to promote comfortable patient transport. Performance and safety standards for e-ambulances will be developed in consultation with the Ministry of Health and Family Welfare (MoHFW), the Ministry of Road Transport and Highways (MoRTH), and other stakeholders.
- E-Buses: Rs 4,391 crore has been earmarked for the procurement of 14,028 e-buses by State Transport Undertakings (STUs) and public transport agencies.
- E-Trucks: To address air pollution from trucks, the scheme includes Rs 500 crore for e-trucks, with incentives for those with scrapping certificates from MoRTH-approved vehicle scrapping centers.
- Charging Infrastructure: The scheme tackles range anxiety by promoting the installation of public EV charging stations (EVPCS), with Rs 2,000 crore dedicated to installing 22,100 fast chargers for e-4Ws, 1,800 fast chargers for e-buses, and 48,400 fast chargers for e-2Ws and e-3Ws.
- Upgrading Test Agencies: To support the growing EV ecosystem, Rs 780 crore will be invested in modernizing MHI's test agencies to handle emerging green mobility technologies.
Industry Responses:
- Shailesh Chandra, SIAM President & MD, Tata Motors: Welcomed the scheme as a significant step towards sustainable mobility, highlighting its impact on accelerating EV adoption and strengthening India’s leadership in global environmental sustainability.
- Girish Wagh, Executive Director, Tata Motors: Noted that the scheme will fast-track India's journey toward zero-emission mobility, particularly in trucks, buses, and ambulances.
- Ayush Lohia, CEO, Lohia Auto: Praised the scheme’s focus on two- and three-wheelers, emphasizing its potential to boost sustainable transportation.
- Suhas Rajkumar, Founder & CEO, Simple Energy: Highlighted the scheme’s role in addressing range anxiety and boosting accessibility to electric mobility through charging infrastructure and incentives.
The PM E-DRIVE scheme is positioned to play a pivotal role in transforming India’s transportation sector, reducing environmental impact, and achieving the country's ecological and fuel security goals through enhanced electric mobility.
