PM E-Drive Subsidy Scheme

Source:  BS

Context: The Central Government has extended the ₹10,900 crore PM E-Drive subsidy scheme by two years until 2027-28, as nearly half of its allocated funds remain unused. Subsidies for electric two- and three-wheelers will end on March 31, 2026.

About PM E-Drive Subsidy Scheme:

• What It Is?
  • A national incentive programme to promote electric vehicle (EV) adoption, manufacturing, and charging infrastructure, with a special focus on electric buses and heavy EVs.
• Launched In: 1 October 2024, replacing the Electric Mobility Promotion Scheme (EMPS-2024).
• Ministry: Ministry of Heavy Industries
• Period: Till March 31, 2028 or until funds are exhausted.
• Budget:

• • ₹10,900 crore total outlay
    • ₹3,679 crore – Demand incentives for EVs.
    • ₹7,171 crore – E-buses, charging infra, and testing facilities.

• Objective:

• • Accelerate EV penetration in public transport and logistics.
  • Reduce upfront cost of EVs for consumers.
  • Strengthen charging network to address range anxiety.
  • Support domestic manufacturing under Atmanirbhar Bharat.

• Key Features:

• • Demand Incentives:
    • 2-wheelers: ₹5,000/kWh in FY25 (max ₹10,000/vehicle), halved in FY26.
    • E-rickshaws & passenger/cargo e-autos: ₹5,000/kWh in FY25 (max ₹25,000–₹50,000), halved in FY26.
    • Electric trucks (3.5–55 tonnes): ₹5,000/kWh or 10% of ex-factory price.
    • Electric ambulances: ₹500 crore allocation, guidelines by 2026.
  • Focus on E-Buses: Deployment in 9 cities with over 40 lakh population.
  • Charging Infrastructure:
    • 22,100 fast chargers for four-wheelers.
    • 1,800 for buses.
    • 48,400 for two- and three-wheelers.
    • Backed by ₹2,000 crore funding.
  • Testing Upgrades – Strengthening EV testing and certification facilities.
  • Integration with EV Policy – Complements GST cuts, income tax benefits under Sec 80EEB, and PLI schemes for batteries and EV manufacturing.

• Coverage:

• • Electric 2-wheelers, 3-wheelers, trucks, ambulances, and buses.
  • Charging infrastructure in urban areas and highways.