PM E-Drive Subsidy Scheme
Kartavya Desk Staff
Source: BS
Context: The Central Government has extended the ₹10,900 crore PM E-Drive subsidy scheme by two years until 2027-28, as nearly half of its allocated funds remain unused. Subsidies for electric two- and three-wheelers will end on March 31, 2026.
About PM E-Drive Subsidy Scheme:
• What It Is? A national incentive programme to promote electric vehicle (EV) adoption, manufacturing, and charging infrastructure, with a special focus on electric buses and heavy EVs.
• A national incentive programme to promote electric vehicle (EV) adoption, manufacturing, and charging infrastructure, with a special focus on electric buses and heavy EVs.
• Launched In: 1 October 2024, replacing the Electric Mobility Promotion Scheme (EMPS-2024).
• Ministry: Ministry of Heavy Industries
• Period: Till March 31, 2028 or until funds are exhausted.
• Budget:
• ₹10,900 crore total outlay ₹3,679 crore – Demand incentives for EVs. ₹7,171 crore – E-buses, charging infra, and testing facilities.
• ₹10,900 crore total outlay ₹3,679 crore – Demand incentives for EVs. ₹7,171 crore – E-buses, charging infra, and testing facilities.
• ₹3,679 crore – Demand incentives for EVs.
• ₹7,171 crore – E-buses, charging infra, and testing facilities.
• Objective:
• Accelerate EV penetration in public transport and logistics. Reduce upfront cost of EVs for consumers. Strengthen charging network to address range anxiety. Support domestic manufacturing under Atmanirbhar Bharat.
• Accelerate EV penetration in public transport and logistics.
• Reduce upfront cost of EVs for consumers.
• Strengthen charging network to address range anxiety.
• Support domestic manufacturing under Atmanirbhar Bharat.
• Key Features:
• Demand Incentives: 2-wheelers: ₹5,000/kWh in FY25 (max ₹10,000/vehicle), halved in FY26. E-rickshaws & passenger/cargo e-autos: ₹5,000/kWh in FY25 (max ₹25,000–₹50,000), halved in FY26. Electric trucks (3.5–55 tonnes): ₹5,000/kWh or 10% of ex-factory price. Electric ambulances: ₹500 crore allocation, guidelines by 2026. Focus on E-Buses: Deployment in 9 cities with over 40 lakh population. Charging Infrastructure: 22,100 fast chargers for four-wheelers. 1,800 for buses. 48,400 for two- and three-wheelers. Backed by ₹2,000 crore funding. Testing Upgrades – Strengthening EV testing and certification facilities. Integration with EV Policy – Complements GST cuts, income tax benefits under Sec 80EEB, and PLI schemes for batteries and EV manufacturing.
• Demand Incentives: 2-wheelers: ₹5,000/kWh in FY25 (max ₹10,000/vehicle), halved in FY26. E-rickshaws & passenger/cargo e-autos: ₹5,000/kWh in FY25 (max ₹25,000–₹50,000), halved in FY26. Electric trucks (3.5–55 tonnes): ₹5,000/kWh or 10% of ex-factory price. Electric ambulances: ₹500 crore allocation, guidelines by 2026.
• 2-wheelers: ₹5,000/kWh in FY25 (max ₹10,000/vehicle), halved in FY26.
• E-rickshaws & passenger/cargo e-autos: ₹5,000/kWh in FY25 (max ₹25,000–₹50,000), halved in FY26.
• Electric trucks (3.5–55 tonnes): ₹5,000/kWh or 10% of ex-factory price.
• Electric ambulances: ₹500 crore allocation, guidelines by 2026.
• Focus on E-Buses: Deployment in 9 cities with over 40 lakh population.
• Charging Infrastructure: 22,100 fast chargers for four-wheelers. 1,800 for buses. 48,400 for two- and three-wheelers. Backed by ₹2,000 crore funding.
• 22,100 fast chargers for four-wheelers.
• 1,800 for buses.
• 48,400 for two- and three-wheelers.
• Backed by ₹2,000 crore funding.
• Testing Upgrades – Strengthening EV testing and certification facilities.
• Integration with EV Policy – Complements GST cuts, income tax benefits under Sec 80EEB, and PLI schemes for batteries and EV manufacturing.
• Coverage:
• Electric 2-wheelers, 3-wheelers, trucks, ambulances, and buses. Charging infrastructure in urban areas and highways.
• Electric 2-wheelers, 3-wheelers, trucks, ambulances, and buses.
• Charging infrastructure in urban areas and highways.