The Union Cabinet, chaired by Prime Minister Narendra Modi, has given the green light to the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme,’ aimed at boosting electric mobility in India. With an outlay of INR 10,900 crore over two years, the scheme is set to accelerate the country’s transition to electric vehicles (EVs), with incentives for various EV categories and critical infrastructure enhancements.
Among the key features of the PM E-DRIVE Scheme is the introduction of e-vouchers, making it easier for buyers to avail of demand incentives when purchasing electric vehicles. The vouchers, authenticated via Aadhaar and delivered directly to buyers’ mobile phones, streamline the process, simplifying the EV purchase experience. These vouchers are essential for claiming reimbursement from manufacturers, further supporting the government’s vision of widespread EV adoption.
One of the standout elements of the scheme is the allocation of INR 500 crore for the deployment of electric ambulances, marking a significant step in integrating EVs into the healthcare sector. This initiative not only supports greener patient transport but also sets a benchmark for sustainable healthcare solutions across the country. The safety and performance standards for these electric ambulances will be established through collaboration with the Ministry of Health and Family Welfare (MoHFW) and other stakeholders.
To further encourage eco-friendly transportation, the scheme provides incentives for the scrapping of old trucks in favour of new electric ones. A fund of INR 500 crore has been allocated for this purpose, with extra incentives for buyers who present a scrapping certificate from approved scrapping centres. This measure aims to address the high pollution levels caused by conventional trucks and encourages the transition to cleaner alternatives.
Additionally, the scheme supports public transport by providing INR 4,391 crore for the procurement of 14,028 electric buses, to be deployed across major cities like Delhi, Mumbai, Kolkata, and Bangalore. The inclusion of intercity and interstate routes is also expected to enhance electric vehicle mobility across India. Preference will be given to states that retire older buses in favour of new electric models, following the Ministry of Road Transport and Highways (MoRTH) guidelines.
In a move to combat range anxiety among EV buyers, the scheme has set aside INR 2,000 crore for the installation of electric vehicle public charging stations (EVPCS) across high EV penetration cities and select highways. A total of 72,300 fast chargers will be installed for electric cars, buses, and two- and three-wheelers, addressing a critical need for reliable charging infrastructure.
To support the growing EV ecosystem, the scheme also focuses on enhancing vehicle testing infrastructure. A dedicated fund of Rs.780 crore will modernise testing agencies, ensuring they are equipped to handle the latest in EV technology. This, combined with a phased manufacturing programme (PMP), aims to strengthen the domestic EV manufacturing sector and supply chain, aligning with the government’s ‘Aatmanirbhar Bharat’ initiative.
