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

The PM E-DRIVE Scheme, approved by the Cabinet, aims to promote electric mobility in India by accelerating adoption through upfront incentives, establishing essential charging infrastructure, reducing environmental impact, and improving air quality.

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

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