PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)

Background and Context

• India faces two big challenges:
  1. Dependence on fossil fuels for transport → high import bill and pollution.
  2. Slow EV adoption due to high upfront cost, lack of charging infrastructure, and weak manufacturing ecosystem.
• To address this, the government has launched the PM E-DRIVE Scheme (Oct 2024–Mar 2026).
• This is the next big step after FAME-II and EMPS 2024, aiming for large-scale EV adoption

Quick Facts

• Purpose: Faster adoption of Electric Vehicles (EVs), building charging infrastructure, and strengthening the EV manufacturing ecosystem.
• Type: Central Sector Scheme (fully funded by Centre).
• Tenure: October 2024 – March 31, 2026.
• Target Vehicles: e-2Ws, e-3Ws, e-ambulances, e-trucks, and e-buses.

Objectives

1. To reduce EV cost through subsidies and incentives.
2. To establish robust charging infrastructure across India.
3. To create a strong EV manufacturing ecosystem, reducing import dependence.
4. To push India towards its Net Zero emissions targets.

Salient Features

(A) Components of the Scheme

• Subsidies → Demand incentives for EVs (2W, 3W, e-ambulances, e-trucks, e-buses).
• Grants for Capital Assets → For e-buses, charging infra, and modernization of testing agencies under Ministry of Heavy Industries (MHI).
• Administrative Support → Information, Education & Communication (IEC) campaigns and fees for the Project Management Agency (PMA).

(B) Demand Incentives

• Directly reduce the upfront cost of EVs at the time of purchase.
• Incentives available through an Aadhaar-based e-voucher system (authenticated via e-KYC).

(C) Sustainability and Safety

• Only EVs meeting performance and safety standards are eligible.
• Promotes use of advanced batteries.
• Encourages scrapping of old vehicles, reducing pollution.

(D) Subsumed Scheme

• The Electric Mobility Promotion Scheme (EMPS) 2024, which was implemented for 6 months (Apr–Sep 2024), is now merged into PM E-DRIVE.

Eligible Categories

1. e-2Ws → Privately and commercially registered electric scooters/bikes.
2. e-3Ws → Registered e-rickshaws and e-carts.
3. e-ambulances → Eligibility finalized with Ministry of Health & Family Welfare.
4. e-trucks → Linked to scrapping certificates from MoRTH-approved centers.
5. e-buses → Priority to cities scrapping old buses.
6. Charging Infrastructure → 100% project funding flexibility, including power infra.
7. Testing Agency Upgrades → ₹780 crore allocated to modernize testing labs under MHI.

Why is PM E-DRIVE Important?

• Economic → Reduces oil import bill and operating cost of transport.
• Environmental → Cuts carbon emissions, helps meet India’s Net Zero 2070 target.
• Industrial → Strengthens domestic EV and battery manufacturing ecosystem.
• Social → Affordable mobility, cleaner cities, new green jobs.

✅ In summary: The PM E-DRIVE Scheme is India’s flagship EV push for 2024–26. It combines subsidies for buyers, grants for infra and buses, support for testing and safety, and a digital incentive system (e-vouchers). Together, it builds the demand, supply, and trust needed to make EVs mainstream in India.