The Government has finally announced the new PM Electric Drive scheme that replaces the FAME II in India. The primary objective of the newly introduced is to promote EV Adoption in the country. It is replacing the FAME II scheme that ended in March 2024. Below you can check all the details about the PM E-Drive Scheme. Before moving ahead, join our 91Wheels WhatsApp Community to stay updated on the latest automotive news.
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PM E-Drive Scheme: Provisions in Detail
The newly launched PM E-Drive has been announced under the supervision of the Ministry of Heavy Industries. For now, the PM E-Drive has a total outlay of Rs. 10,900 crore for two years. The new scheme provides incentives/subsidies on electric three-wheelers, trucks, buses, two-wheelers and electric ambulances as well. With an extra emphasis on the EV charging infrastructure, the PM E-Drive scheme will also provide support to 88,500 EV charging stations in the country.
Notably, the PM E-Drive doesn't provide any subsidies for the purchase of electric or hybrid cars/SUVs. Yes, you heard right, there is no provision to support electric and hybrid cars in the PM E-Drive Scheme.
PM E-Drive Scheme Incentives Details
The PM E-Drive Scheme reserves Rs. 3,679 crore for providing incentives and subsidies on the purchase of electric two-wheelers, three-wheelers, trucks, ambulances and other emerging electric vehicles.
| Provision | Support/Outlay Provided | Details |
|---|---|---|
| Electric Buses Procurement | Rs. 4,391 crore | 14,028 buses for state/public transport |
| Fast Chargers for Electric 4-Wheelers | Rs. 2,000 crore | 22,100 chargers |
| Fast Chargers for Electric Buses | - | 1,800 chargers |
| Fast Chargers for Electric 2- & 3-Wheelers | - | 48,400 chargers |
Note: The Rs. 2000 outlay covers all three provisions - fast chargers for electric four wheelers, fast chargers for electric buses and 2-3 Wheelers.
Electric 2-3 Wheelers sales
As per government records, In the last financial year two wheelers contributed 56 percent and three wheelers contributed around 38 percent of the total electric vehicles sales in the country. One of the major barriers amid the faster EV adoption still remains the underdeveloped EV charging infrastructures in our region.
However, with the increased emphasis on the EV charging infra of the government through the PM E-Drive Scheme is expected to improve things on a larger scale. Apart from this, we expect that the provided subsidies and incentives on purchasing EVs would further boost the EV adoption in India.
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Verdict
The PM E-Drive scheme is a promising step toward accelerating India's EV adoption, focusing on infrastructure and incentivizing public transport and two- and three-wheelers. While it overlooks electric cars and hybrids, its emphasis on expanding EV charging stations and offering subsidies for commercial vehicles positions it as a strategic move to overcome current adoption barriers and boost green mobility.
