The nearly two-year long scheme will be implemented from October 1, 2024 to March 31, 2026, and will look to foster the adoption of EVs by offering subsidies
The notification also mentioned that the new scheme will subsume the number of vehicles and the expenditure made under the erstwhile EMPS 2024
While the biggest outlay of INR 4,391 Cr has been assigned for electric buses, INR 1,772 Cr has been earmarked to subsidise electric two-wheelers
The Ministry of Heavy Industries (MHI) on Monday (September 30) notified the INR 10,900 Cr PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.
The nearly two-year long scheme will be implemented from October 1, 2024 to March 31, 2026.
It aims to foster adoption of electric vehicles (EVs) by offering subsidies to manufacturers, shoring up charging infrastructure and spurring local EV manufacturing capabilities.
The gazette notification also mentioned that the PM E-DRIVE initiative will subsume the number of vehicles and the expenditure made under the erstwhile electric mobility promotion scheme (EMPS) 2024.
The new PM E-DRIVE initiative is kind of an extension of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) scheme.
As per the notification, INR 1,772 Cr, including EMPS 2024 outlay, will be utilised to subsidise electric two-wheelers between FY25 and FY26. It also noted financial incentives for electric two-wheelers will be capped at INR 10,000 per vehicle in FY25 and would then be halved to INR 5,000 per vehicle from 2025-26.
Another INR 902 Cr under the scheme will go towards offering sops for electric three-wheelers (including e-rickshaws, e-carts and L5 vehicles). Besides, INR 500 Cr each has been earmarked for electric ambulances as well as etrucks and other emerging categories.
Additionally, the biggest outlay of INR 4,391 Cr has been assigned for the roll out of 14,028 electric buses (with an ex-factory price less than INR 2 Cr) while a support of INR 2,000 Cr has been envisaged for setting up “adequate public charging infrastructure” for various categories of EVs. Another INR 780 Cr has also been provisioned for upgrading the facilities of EV testing agencies.
Of the total outlay, INR 50 Cr has been set aside for admin expenses, including INR 35 Cr fees for knowledge partners and technical expertise and INR 15 Cr towards events, exhibitions, roadshows, among others.
Under the new scheme, a phased manufacturing programme (PMP) has also been notified to support localisation of EV components. “The minimum of 50% of domestic value addition (DVA) in manufacturing of EV charger with effect from the date of last implementation date i.e. 1 st December 2024,” added the notification.
“An inter-ministerial empowered committee viz. PISC (project implementation and sanctioning committee) headed by secretary (heavy industries) is constituted for overall monitoring, sanctioning and implementation of PM E-DRIVE as well as to remove any obstacles/ difficulties that may arise in the implementation stage,” read the notification.
The 12-member panel will also comprise NITI Aayog CEO, MHI financial advisor, secretaries from various departments, including roads and transport, power, housing, urban affairs, among others.
The panel will also oversee “downward revision of rates of demand incentive”, quantum of financial support for setting up of charging infrastructure, sanctioning of funds and approving the guidelines for upgradation of testing agencies, among others.
The notification comes weeks after the union cabinet approved the PM E-DRIVE scheme to spur EV adoption in the country. It effectively replaced the FAME-II scheme, which was approved in 2019 with an outlay of INR 10,000 Cr for a period of three years.
However, the deadline was extended by the Centre from March 31, 2022 to March 31, 2024. Subsequently, the government launched the EMPS 2024 with an allocation of INR 500 Cr as a stop-gap measure to promote EV adoption.
