India's EV Revolution: PM E-DRIVE Scheme Unveiled

Overview and Objectives of PM E-DRIVE Scheme

• Cabinet approves ₹10,900 crore outlay for two years
• Replaces FAME program, aims to promote electric mobility in India

Key objectives:

• • Expedite EV adoption through upfront incentives
  • Establish essential charging infrastructure
  • Reduce environmental impact and improve air quality
  • Promote Aatmanirbhar Bharat through domestic manufacturing

Key Components and Allocations

Subsidies and Demand Incentives (₹3,679 crore):

• • Support for 2.479 million e-2Ws, 316,000 e-3Ws, and 14,028 e-buses
  • Introduction of Aadhaar-authenticated e-vouchers for buyers
  • New initiative: ₹500 crore for e-ambulances

Public Transport Support (₹4,391 crore):

• • Procurement of 14,028 e-buses for public transport agencies
  • Demand aggregation by CESL in nine major cities
  • Priority for cities/states scrapping old buses

Charging Infrastructure (₹2,000 crore):

• • Installation of 22,100 fast chargers for e-4Ws
  • 1,800 fast chargers for e-buses
  • 48,400 fast chargers for e-2W/3Ws

Other Allocations:

• • ₹500 crore for incentivizing e-trucks
  • ₹780 crore for modernizing testing agencies

Implementation and Expected Impact

• Ministry of Heavy Industries to implement the scheme
• E-voucher system to streamline incentive process
• Phased Manufacturing Programme (PMP) to encourage domestic production
• Focus on tier-2 and tier-3 cities through PM-eBus Sewa scheme
• Payment Security Mechanism (PSM) of ₹3,435.33 crore for e-bus procurement

Expected outcomes:

• • Significant employment generation along the EV value chain
  • Increased investment in EV sector and supply chain
  • Reduced dependence on fuel imports
  • Improved air quality in urban areas