PM E-DRIVE: Centre approves ₹10,900 crore EV subsidy scheme; how can it be availed?

The Union Cabinet on Wednesday approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme with an allocation of ₹10,900 crore for two years to promote the adoption of electric vehicles in the country.

This scheme will replace the existing FAME programme, which ran for nine years until March. However, PM E-DRIVE will not subsidise electric cars.

The scheme will support nearly 25 lakh electric two-wheelers, 3.16 lakh electric-three wheelers, and 14,028 electric buses.

"The decision on PM E-DRIVE Scheme was taken at the meeting of the Union Cabinet chaired by Prime Minister Narendra Modi," Information and Broadcasting Minister Ashwini Vaishnaw said.

Vaishnaw said that the PM E-DRIVE will also support 88,500 charging sites.

How can the PM E-Drive subsidy be availed for electric two-wheelers and e-three-wheelers?

The Ministry of Heavy Industries (MHI) is introducing e-vouchers for EV buyers to avail demand incentives. When purchasing the EV, the scheme portal will generate an Aadhaar-authenticated e-voucher for the buyer. A link to download the e-voucher will shared on the buyer's registered mobile number.

The EV buyer must sign the e-voucher and submit it to the dealer for a subsidy. The dealer will also sign the e-voucher and upload it on the PM E-DRIVE portal. The signed e-voucher will be shared with the buyer and dealer through SMS. The signed e-voucher will be necessary for the OEM (Original equipment manufacturer) to claim reimbursement of demand incentives under the scheme.

The scheme has set aside demand incentives/subsidies worth ₹3,679 crore to incentivise electric two-wheelers, e-three-wheelers, e-trucks and e-ambulances adoption.

The government has provided ₹4,391 crore for the procurement of 14,028 e-buses and ₹500 crore for the deployment of e-ambulances.

The scheme also promotes the deployment of e-trucks and has set aside ₹500 crore as an incentive to encourage their adoption.