The union cabinet’s recently approved PM E-DRIVE Scheme will reportedly have a phased manufacturing programme (PMP) to support local manufacturing of EV components
Electric vehicle makers that source components locally will receive financial support under the scheme without any domestic value addition mandate
The financial aid for electric two-wheelers will be halved to INR 5,000 per vehicle from 2025-26, while for large electric three-wheelers, the subsidy will be capped at INR 25,000 per vehicle
The union cabinet’s recently approved ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ for the promotion of electric vehicles in the country, will reportedly have a phased manufacturing programme (PMP) to support local manufacturing of EV components.
For the uninitiated, the PM E-DRIVE scheme which will effectively replace the FAME scheme, will have an outlay of INR 10,900 Cr for a period of two years, which is higher than the INR 10,000 Cr initial outlay of the FAME- II scheme.
As per ET, citing officials close to the matter, electric vehicle makers that source components locally will receive financial support under the scheme without any domestic value addition mandate.
They added that only local assembly of parts to make an EV component will be mandatory for claiming eligibility under the scheme, but suppliers will be allowed to import parts.
“There will be a PMP to ensure local manufacturing of EVs. Companies seeking subsidies under the scheme will be given six months to comply with the PMP from the date of scheme notification,” the report quoted a senior government official as saying.
The officials also revealed that the financial aid for electric two-wheelers will be halved to INR 5,000 per vehicle from 2025-26, while for large electric three-wheelers, the subsidy will be capped at INR 25,000 per vehicle, based on the report.
The report also added another official’s statement that manufacturing facilities of component suppliers will be subject to checks to prevent subsidy misuse.
While imposing the new PM E-DRIVE scheme, the Ministry of Heavy Industries (MHI) will launch e-vouchers for EV buyers to avail demand incentives. The scheme will also boost India’s charging infrastructure by promoting installation of electric vehicle public charging stations (EVPCS).
In the recent new e-bike launch event of Revolt Motors in Delhi-NCR, the union minister of road transport and highways Nitin Gadkari said that India wants to become the number one automobile industry in the world in the next five years with the cooperation of electric vehicle (EV) manufacturers.
