The PM Electric-Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme is a significant initiative by the Government of India aimed at accelerating the adoption of electric vehicles (EVs) across the country. It was launched by the Ministry of Heavy Industries (MHI) on September 29, 2024, and officially came into effect on October 1, 2024. The scheme is designed to run for two years, until March 31, 2026.
Objectives of the PM E-DRIVE Scheme:
The primary goals of the PM E-DRIVE scheme are multifaceted:
- Accelerate EV Adoption: To promote the faster adoption of electric vehicles across various categories by providing incentives for their purchase.
- Develop Charging Infrastructure: To establish a robust and widespread network of EV charging stations across the country, addressing “range anxiety” among potential EV buyers.
- Strengthen EV Manufacturing Ecosystem: To boost domestic manufacturing capabilities for EVs and their components, aligning with the “Aatmanirbhar Bharat” (self-reliant India) initiative.
- Reduce Environmental Pollution: To mitigate the environmental impact of transportation by promoting clean energy and reducing carbon emissions.
- Enhance Fuel Security: To decrease India’s reliance on fossil fuels, contributing to national energy security.
- Create Employment Opportunities: To generate employment across the EV value chain, from manufacturing to charging infrastructure deployment.
- Support Public Transportation: To facilitate the transition to electric public transport, particularly electric buses and three-wheelers, for more affordable and eco-friendly options.
Key Components and Benefits:
The PM E-DRIVE scheme offers various components and benefits to achieve its objectives:
- Direct Subsidies/Demand Incentives:
- Purpose: To reduce the upfront purchase cost of eligible EVs, making them more affordable for consumers.
- Eligible Vehicles:
- Electric Two-Wheelers (e-2Ws) – both commercially registered and privately/corporate-owned.
- Electric Three-Wheelers (e-3Ws), including e-rickshaws, e-carts, and L5 category vehicles (mainly for commercial purposes).
- Electric Buses (e-buses) for State Transport Undertakings (STUs) / public transport agencies.
- Electric Ambulances.
- Electric Trucks (with scrapping certificates from MoRTH-approved centers).
- Other emerging EV categories.
- Incentive Structure (FY 2024-25, to be halved in FY 2025-26):
- e-2 Wheelers: ₹5,000 per kWh, capped at ₹10,000 per vehicle (max ex-factory price ₹1.5 lakh).
- Registered e-Rickshaws and e-Carts: ₹5,000 per kWh, capped at ₹25,000 per vehicle (max ex-factory price ₹2.5 lakh).
- Registered e-3 Wheelers (L5): ₹5,000 per kWh, capped at ₹50,000 per vehicle (max ex-factory price ₹5 lakh).
- e-Buses: Up to ₹35 lakh per bus, with an outlay of ₹4,391 crore for procuring 14,028 e-buses.
- Eligibility Note: Only EVs equipped with advanced batteries and registered under the Central Motor Vehicles Rules (CMVR), 1989, are eligible. EVs purchased by government departments are generally excluded from demand incentives.
- e-Voucher System:
- The MHI has introduced an e-Voucher system for EV buyers to avail demand incentives.
- At the time of purchase, an Aadhaar-authenticated e-Voucher is generated on the scheme portal.
- This e-voucher is signed by both the buyer and the dealer and uploaded to the portal, allowing the Original Equipment Manufacturer (OEM) to claim reimbursement for the subsidy.
- Charging Infrastructure Development:
- Significant allocation (₹2,000 crore) for setting up public fast charging stations.
- Targets:
- 48,400 chargers for e-2 and e-3 wheelers.
- 22,100 fast chargers for e-4 wheelers.
- 1,800 high-power chargers for e-buses.
- These will be installed in key cities with high EV penetration and along selected inter-city/highway routes.
- Bharat Heavy Electricals Ltd (BHEL) will develop a “Super App” for EV users to book slots, make payments, and check charger availability.
- Upgradation of Testing Agencies:
- Allocation of ₹780 crore to modernize testing agencies under the MHI, ensuring they meet evolving EV technology standards and safety protocols.
- Grants for Creation of Capital Assets:
- This includes financial support for the acquisition of electric buses and the establishment of charging infrastructure.
How to Claim the Subsidy (Simplified Process):
- Buy an Eligible EV: Visit an authorized EV dealer and confirm that the vehicle qualifies under the PM E-DRIVE scheme.
- Aadhaar-based e-KYC: The dealer will use facial recognition to verify your identity on the PM E-DRIVE portal.
- Receive e-Voucher: Once verified, an e-voucher with a unique ID will be sent to your registered mobile number.
- Dealer Applies Discount: You review and sign the e-voucher and return it to the dealer. The dealer then applies the subsidy directly to your invoice.
- OEM Claims Reimbursement: The Original Equipment Manufacturer (OEM) claims the subsidy amount back from the government.
The PM E-DRIVE scheme builds upon previous initiatives like FAME-I and FAME-II and the Electric Mobility Promotion Scheme (EMPS) 2024, aiming for a more comprehensive and streamlined approach to accelerate India’s transition to electric mobility.
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