Context: The Cabinet has approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme with a budget allocation of Rs. 10,900 crore over two years.
Why in the news?
The Union Cabinet, led by the Prime Minister of India, has recently approved a proposal from the Ministry of Heavy Industries (MHI) to implement a ‘PM E-DRIVE Scheme‘ scheme.
The Union Cabinet has approved the PM E-DRIVE Scheme to accelerate the adoption of electric vehicles (EVs) in India.
About the PM E-DRIVE Scheme :
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Aspects |
Description |
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About |
a. The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) has been introduced to encourage the adoption of electric vehicles (EVs). b. This scheme replaces the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II). c. It focuses on promoting public transport by offering incentives for electric buses and trucks. |
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Implemented by |
Ministry of Heavy Industries (MHI) |
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Aim |
The primary goal of PM E-DRIVE is to accelerate the transition to electric vehicles by offering upfront incentives and building a robust charging ecosystem. |
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Subsidies and Incentives |
a. Subsidies will be offered to encourage the adoption of electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), e-ambulances, e-trucks, and other emerging electric vehicles. b. Support will be extended for 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses. |
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Features |
a. E-Vouchers: Aadhaar-authenticated e-vouchers will be introduced for EV buyers, signed by both the buyer and dealer and uploaded to the PM E-DRIVE portal to facilitate demand incentives.
b. E-Ambulances: A sum of Rs. 500 crore has been allocated for e-ambulances, with safety standards developed in consultation with the Ministry of Health and Family Welfare (MoHFW) and other stakeholders.
c. E-Buses: Rs. 4,391 crore has been earmarked for the procurement of 14,028 e-buses by state transport units. d. CESL will oversee demand aggregation in cities with populations exceeding 40 lakh, including Delhi, Mumbai, and Kolkata. |
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Impact |
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Significance of the Scheme:
- Encourages the deployment of electric trucks across the country.
- Supports public transportation to enhance mass mobility.
- Aim to reduce the environmental impact of transportation and improve air quality.
- Includes a Phased Manufacturing Programme (PMP) to promote domestic manufacturing and strengthen the local supply chain.
Challenges in Promoting EVs:
- A significant portion of India’s electricity is still generated from coal.
- Charging infrastructure remains underdeveloped.
- Battery technology is not yet fully optimized.
Other Initiatives in the EV Sector:
- The National Electric Mobility Mission Plan (NEMMP) was launched to promote the adoption of EVs in India.
- The Production-Linked Incentive (PLI) scheme for the automotive and auto component industries supports EV growth.
- Another PLI scheme focuses on the production of advanced chemistry cell (ACC) batteries.
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