MObjective: The PM E-DRIVE Scheme aims to accelerate electric vehicle (EV) adoption by offering upfront incentives, promoting charging infrastructure, and enhancing air quality.
- Fund Allocation and Targets: With a budget of ₹10,900 crore for 2024-26, it supports e-2Ws, e-3Ws, and e-buses, along with the installation of over 70,000 fast chargers across major cities and highways.
- Subsidies for EV Purchase: Consumers get demand incentives based on battery capacity, reducing the upfront cost of e-2Ws and e-3Ws. This subsidy is provided to manufacturers and reimbursed by the government.
- Charging Infrastructure: Public charging stations will be installed in selected cities and highways, following the Ministry of Power’s 2024 guidelines. The scheme includes incentives for e-buses and charging stations.
- Encouraging Local Manufacturing: The scheme promotes domestic manufacturing of EVs and charging infrastructure, independent of existing PLI schemes,while encouraging states to offer additional fiscal benefits.
- Phased Manufacturing Programme (PMP): OEMs must follow the PMP to qualify for support, encouraging localized production of EVs and components.
- EV-Friendly Policies: The scheme includes fiscal and non-fiscal incentives like toll exemptions, reduced road taxes, and public-private partnerships, enhancing the ease of EV adoption in India.
- PM-eBus Sewa-Payment Security Mechanism (PSM): The scheme supports the deployment of over 38,000 e-buses from 2024-25 to 2028-29, using a Public-Private Partnership model where OEMs/operators handle procurement and operation, with no upfront cost for Public Transport Authorities (PTAs).
- The scheme ensures timely monthly payments to operators through a dedicated fund, with operations supported for up to 12 years, managed by Convergence Energy Services Limited (CESL).