FAME gets an update in the form of a PM E-DRIVE

Cabinet approves PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme with an outlay of ₹.10,900 crore over two years.

The Union Cabinet has approved the proposal of the Ministry of Heavy Industries (MHI) for the implementation of a scheme titled ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ for the promotion of electric mobility in the country.  The scheme has an outlay of Rs 10,900 crore over two years.

The major components of the scheme include Subsidies/Demand incentives worth Rs.3,679 crore provided to incentivise e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs. The scheme will support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.

MHI has introduced e-vouchers for EV buyers to avail of demand incentives under the scheme. 

The scheme allocates Rs.500 crore for the deployment of e-ambulances. This is a new initiative to promote e-ambulance for comfortable patient transport. The performance and safety standards of e-ambulances will be formulated in consultation with MoHFW, MoRTH and other relevant stakeholders.

Rs.4,391 crore has been provided to procure 14,028 e-buses by STUs/public transport agencies. CESL will carry out demand aggregation in nine cities with populations exceeding 4 million, including Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune, and Hyderabad. Intercity and Interstate e-buses will also be supported in consultation with states.
The trucks are a major contributor to air pollution. Rs.500 crore has been allocated incentives for e-trucks. Incentives will be given to those scrapping certificate holders from MoRTH-approved vehicle scrapping centres (RVSF).

The scheme addresses the range anxiety of EV buyers by promoting the installation of electric vehicle public charging stations (EVPCS). These EVPCS shall be installed in the selected cities with high EV penetration and on designated highways. The scheme proposes the installation of 22,100 fast chargers for e-4 Ws, 1800 fast chargers for e-buses and 48,400 fast chargers for e-2W/3Ws.

Given the growing EV ecosystem in the country, the test agencies of MHI will be modernised to deal with the new and emerging technologies to promote green mobility.

The scheme promotes mass mobility by supporting means of public transportation.  The primary objective of the PM E-DRIVE scheme is to expedite the adoption of EVs by providing upfront incentives for their purchase, as well as by facilitating the establishment of essential charging infrastructure for EVs. The PM E-DRIVE scheme aims to promote EVs to reduce the environmental impact of transportation and improve air quality.
The government is raising its Aatmanirbhar Bharat slogan by incorporating a phased manufacturing programme (PMP) which encourages domestic manufacturing and strengthening of the EV supply chain.

This initiative of Govt. of India aims to address concerns regarding environmental pollution, and fuel security and promote sustainable transportation solutions. This scheme along with its PMP, shall spur investment in the EV sector and associated supply chain while creating employment opportunities.