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PM E-Drive scheme aims to transform EV ecosystem (Pic: Ashwini Vaishnaw X handle)
The Union Cabinet has approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) Scheme for promoting electric vehicles. The scheme will have an outlay of ₹10,900 crore over the next two years.
Additionally, a Payment Security Mechanism (PSM) of ₹3,435.33 crore has been established under the PM-eBus Sewa scheme. The new PM E-Drive Scheme will replace the FAME programme, which ran for nine years until March. However, it does not provide support for electric cars and excludes hybrid vehicles, contrary to earlier expectations.
The Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) Scheme was introduced in April 2015 to promote local manufacture and sale of electric vehicles by providing incentives to end customers. According to Union Information and Broaqdcasting Minister Ashwin Vaishnaw, the FAME scheme has supported over 16 lakh EVs.
What's there for EV ecosystem?
The PM E-Drive scheme will subsidise electric two-wheelers, three-wheelers, and buses, as well as hybrid ambulances and electric trucks. The scheme aims to support 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 e-buses. EV buyers will receive e-vouchers to access demand incentives through the scheme. Upon purchasing an EV, the scheme portal will generate an Aadhaar-authenticated e-voucher.
A total of ₹4,391 crore has been allocated for the acquisition of 14,028 e-buses by state transport undertakings and public transport agencies. Convergence Energy Services Limited (CESL) will handle demand aggregation in nine cities with populations exceeding 4 million: Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune, and Hyderabad. The scheme will also support intercity and interstate e-buses in collaboration with state governments.
22,100 fast chargers for e-four wheelers
To alleviate range anxiety for electric vehicle (EV) buyers, the scheme includes the installation of 22,100 fast chargers for e-four wheelers (e-4Ws), 1,800 chargers for e-buses, and 48,400 chargers for e-two wheelers (e-2Ws) and e-three wheelers (e-3Ws), with a budget allocation of ₹2,000 crore. Additionally, ₹500 crore has been allocated to promote the adoption of electric trucks, and ₹780 crore has been set aside for modernising testing agencies to enhance the electric vehicle ecosystem. Another ₹500 crore is dedicated to the deployment of e-ambulances.
Under the PM-eBus Sewa scheme, it is claimed that 10,000 air-conditioned electric buses will be introduced in tier-2 and tier-3 cities through a public-private partnership model. As of August, the government has allocated ₹541 crore for bus operations and associated infrastructure across 75 cities.
How to get EV subsidy?
Under the PM E-Drive scheme, when purchasing an electric vehicle, the dedicated portal will generate an Aadhaar-authenticated electronic voucher for the buyer. The buyer will receive a link to download this e-voucher on their registered mobile number. They will then sign the e-voucher and present it to the dealer to claim the demand incentives. The dealer will also sign the e-voucher and upload it to the PM E-Drive portal. Both the buyer and dealer will receive a confirmation SMS with the signed e-voucher. Auto manufacturers can then seek reimbursement of the demand incentives from the government by submitting the signed e-vouchers. Consequently, EV buyers will not receive a direct subsidy in their bank accounts but will benefit from a discounted purchase price. The OEMs will claim the subsidy reimbursement from the government on behalf of the customer.
