Government of India has notified ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ on 29.09.2024 to provide impetus to the green mobility & development of EV eco-system in the country. The scheme has an outlay of ₹10,900 crore over a period of two years from 01.04.2024 to 31.03.2026. The Electric Mobility Promotion Scheme (EMPS) 2024 implemented for a period of six months from 01.04.2024 to 30.09.2024, is subsumed in PM E-DRIVE scheme.
Salient features of PM E-DRIVE scheme:
- Introduction of E- Vouchers: – The Ministry of Heavy Industry (MHI) has introduced E-vouchers for Electric vehicle buyer to avail the demand incentive under the scheme.
- Introduction of new vehicle segments: – An allocation ₹500 crore each has been done for deployment of e-ambulances and e-trucks under the scheme.
- Upgradation of testing agencies: ₹780 Crore has been earmarked for upgradation of vehicles testing agencies, identified under the scheme.
PM E-Drive scheme aims to enhance electric mobility in India and contribute to the country’s environmental goals through several key strategies. The scheme is available till 31.03.2026. The scheme aims to achieve its objective in the following manner:
- Faster Adoption of EVs: The scheme seeks to accelerate the uptake of electric vehicles by reducing their upfront costs through demand incentives.
- Charging Infrastructure: A significant focus is on establishing a robust charging infrastructure network to build confidence among EV users and support the growing EV fleet.
- EV Manufacturing Ecosystem: The scheme promotes the development of a local EV manufacturing ecosystem, ensuring long-term sustainability and reducing reliance on imports.
- Emphasis on Public Transport: Prioritising EVs for public transport and commercial use aims to provide environmentally friendly transportation options for the masses, thereby reducing overall emissions.
- Reduced Reliance on Fossil Fuels: By promoting electric mobility, the scheme intends to decrease dependence on fossil fuels and lower emissions from the transportation sector.
The key benefits expected from the implementation of the PM E-Drive scheme for both consumers and manufacturers are as follows:
- For Consumers: Demand incentives lower the initial cost of EVs, making them more accessible for EV buyers.
- For Manufacturers: Demand incentives directly stimulate the demand for EVs, boosting sales and production volumes. The Phased Manufacturing Programme (PMP) supports the localisation of EV components, fostering domestic manufacturing capabilities.
