The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the proposal of the Ministry of Heavy Industries (MHI) to implement the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme aimed at promoting electric mobility in the country. According to the official statement, the scheme will cost Rs 10,900 crore for two years.
Subsidies and demand incentives worth Rs 3,679 crore have been provided to encourage e-two-wheelers, e-three-wheelers, e-ambulances, e-trucks and other emerging EVs. This will help 24.79 lakh e-two-wheelers, 3.16 lakh e-three-wheelers and 14,028 e-buses, the statement said.
Ministry of Heavy Industries is introducing e-vouchers for electric vehicle buyers to avail demand incentive under this scheme. At the time of purchase of electric vehicle, the scheme portal will generate Aadhaar authenticated e-voucher for the buyers. A link to download the e-voucher will be sent to the registered mobile number of the buyer. This e-voucher will be signed by the buyer and presented to the dealer to avail demand incentive under the scheme. It will also be signed by the dealer and uploaded on PM e-Drive portal. The signed e-voucher will be sent to the buyer and the dealer through SMS. This signed e-voucher will be required for original equipment manufacturers (OEMs) to claim reimbursement of demand incentive under the scheme.
Rs 500 crore has been allocated for deployment of e-ambulances under this scheme. This is a new initiative of the Government of India to promote the use of e-ambulances for comfortable transportation of patients. The performance and safety standards of e-ambulances will be formulated in consultation with the Ministry of Health and Family Welfare, Ministry of Road Transport and Highways and other relevant stakeholders.
An amount of Rs 4,391 crore has been provided for procurement of 14,028 e-buses by State Transport Corporations/Public Transport Agencies. Demand aggregation in nine cities having population of more than 40 lakh namely Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune and Hyderabad will be done by CESL. Intercity and interstate e-buses will also be supported in consultation with the States.
While allocating buses to cities/States, priority will be given to those buses of the cities/States which are being purchased after scrapping old STU buses through Authorized Scrapping Centres (RVSF) following the guidelines of MoRTH Vehicle Scrapping Scheme.
Trucks are the biggest contributors to air pollution. This scheme will boost the deployment of e-trucks in the country. An amount of Rs 500 crore has been allocated to encourage e-trucks. The incentive will be given to those who have a scrapping certificate from a MoRTH-approved Vehicle Scrapping Centre (RVSF).
Welcoming the Cabinet decision to promote electric mobility in the country, industry body SIAM President Shailesh Chandra said the PM E-Drive scheme is a progressive step which underlines the firm commitment towards promoting sustainable mobility.
SIAM's Chandra said, “This will undoubtedly accelerate the adoption of electric vehicles (EVs) across the country, making clean and green transportation accessible to all. This visionary initiative reflects the government's unwavering support for India's transition to electric mobility, driving innovation and investment in the sector. We believe this scheme will not only enhance the growth of the EV ecosystem but also strengthen India's leadership in the global movement towards environmental sustainability.”
In a separate development, the Cabinet also approved the PM-e-Bus Service-Payment Security Mechanism (PSM) scheme for procurement and operation of e-buses by public transport authorities, which will cover over 38,000 e-buses with an outlay of over Rs 3,435 crore over a five-year period from FY 2025 to FY 2029.
