Ministry of Heavy Industries (MHI) has formulated PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme (“the Scheme”) with the approval of the Union Cabinet. The scheme is proposed to be implemented through the following components:
- Subsidies: Demand incentives for e-2W, e-3W, e-ambulances, e-trucks & other new emerging EV categories,
- Grants for creation of capital assets: e-buses, establishment of network of charging stations & upgradation of testing agencies identified under this Scheme, and
- Administration of Scheme including IEC (Information, Education & Communication) activities and fee for project management agency (PMA).
Eligibility
- Vehicles which are registered as “Motor Vehicle” as per the Central Motor Vehicle Rules (CMVR) will only be eligible for incentives. Vehicles fitted with only advanced batteries and satisfying performance criteria will only be eligible under the Scheme.
- Since cost of batteries is one of the main factors of difference in acquisition price of EVs and internal combustion engine (ICE) vehicles, the demand incentive/ grant for EVs would be based on battery capacity (i.e. energy content measured in kWh) used in such vehicles. In order to restrict very high end vehicles from availing Government incentives, it is proposed to restrict incentives to vehicles with ex-factory price less than a particular threshold value. Ex-factory price shall mean “price of the vehicle at the factory gate before applicable taxes”.
