Launch of PM E-DRIVE Scheme: A New Milestone in India’s Electric Mobility

The Ministry of Heavy Industries launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme on 11th September 2024, at Bharat Mandapam, New Delhi, marking a pivotal shift in India’s electric mobility efforts. The scheme, with a financial outlay of ₹10,900 crore for two years, aims to accelerate EV adoption and build critical infrastructure nationwide, aligning with Prime Minister Modi’s vision for net-zero emissions by 2070.

The transition from FAME and the Electric Vehicle Promotion Scheme (EMPS) to PM E-DRIVE signals a focused push towards cleaner and more sustainable transportation under the ‘Swachh Vahan’ initiative.

Key Components of the PM E-DRIVE Scheme

Subsidies and Demand Incentives: ₹3,679 crore allocated to incentivize 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, 14,028 e-buses, and emerging EVs.

E-Voucher System: Aadhaar-authenticated e-vouchers for EV buyers, ensuring seamless access to incentives.

E-Ambulances and E-Trucks: ₹500 crore each for e-ambulances and e-trucks, supporting public health and transportation needs.

E-Buses: ₹4,391 crore allocated for 14,028 e-buses across nine cities, with a focus on replacing scrapped buses.

Public Charging Infrastructure: ₹2,000 crore for setting up 72,300 fast chargers for e-2Ws, e-3Ws, e-4Ws, and e-buses.

Test Agency Modernization: ₹780 crore allocated to upgrade testing agencies for new EV technologies.

The scheme focuses on enhancing affordable, environment-friendly transportation, targeting primarily commercial vehicles like e-2Ws and e-3Ws, with eligibility extending to private and corporate-registered vehicles. The incentives under PM E-DRIVE apply only to advanced battery-fitted EVs.

Eligible Vehicle Categories and Fund Allocation

Vehicle Segment	Maximum No. of Vehicles to be Supported	Total Fund Support (₹ crore)
e-2 Wheelers (e-2Ws)	24,79,120	1,772
e-Rickshaws & e-Carts	1,10,596	192
e-3 Wheelers (L5)	2,05,392	715
e-Ambulances	To be notified separately	500
e-Trucks	To be notified separately	500
e-Buses	14,028	4,391
EV Public Charging Stations (PCS)	72,300	2,000
Testing Agencies Upgradation	–	780
Administrative Expenses	–	50
Total	28,81,436	10,900

Key Features

• PM E-DRIVE e-Voucher: A digital system generating Aadhaar-authenticated e-vouchers for EV buyers to access demand incentives. These e-vouchers will be sent to customers’ registered mobile numbers at the time of purchase.
• Upgradation of Testing Agencies: ₹780 crore allocated to modernize MHI testing agencies to ensure they meet new EV technology standards.

Here’s a concise table with key points relevant for exam preparation:

Key Points	Details
Why in News	The Ministry of Heavy Industries launched the PM E-DRIVE Scheme on 11th September 2024 with an outlay of ₹10,900 crore to accelerate EV adoption and build critical infrastructure.
Scheme Launch	Launched on 11th September 2024 at Bharat Mandapam, New Delhi.
Financial Outlay	₹10,900 crore for two years.
Focus of the Scheme	Accelerating EV adoption, building infrastructure, and supporting net-zero emissions goal by 2070.
Key Components	– Subsidies for 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, 14,028 e-buses, and emerging EVs. – ₹500 crore each for e-ambulances and e-trucks. – ₹4,391 crore for 14,028 e-buses in 9 cities. – ₹2,000 crore for 72,300 fast chargers. – ₹780 crore for testing agency modernization.
e-Voucher System	Aadhaar-authenticated e-vouchers for EV buyers to access incentives.
Public Charging Infrastructure	₹2,000 crore allocated for 72,300 charging stations.
Vehicle Segments Supported	– e-2Ws: 24,79,120 units (₹1,772 crore). – e-3Ws: 2,05,392 units (₹715 crore). – e-Rickshaws & e-Carts: 1,10,596 units (₹192 crore). – e-Buses: 14,028 units (₹4,391 crore). – EV Public Charging Stations: 72,300 (₹2,000 crore). – e-Ambulances & e-Trucks: ₹500 crore each.
Eligibility for Incentives	Advanced battery-fitted EVs (commercial, private, and corporate-registered).
Scheme Transition	Transition from FAME and Electric Vehicle Promotion Scheme (EMPS) to PM E-DRIVE under the ‘Swachh Vahan’ initiative.
Testing Agency Upgradation	₹780 crore for modernization of testing agencies for new EV technology standards.