Innovative Electric Drive Revolution in India

The Ministry of Heavy Industry, Govt. of India, with the approval of Union Cabinet, Chaired by Hon’ble Prime Minister Shri Narender Modi has launched scheme titled ‘ PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme vide Gazette notification S.O. 4259 (E) on September 29, 2024, which started from October 1 and effective period for the scheme will be two years.

The PM E-DRIVE scheme is applicable to a variety of electric vehicles (EVs), including:

1. Electric two-wheelers (e-2Ws)
   Both commercial and privately owned e-2Ws are eligible, but only those with advanced batteries qualify for the demand incentive.
2. Electric three-wheelers (e-3Ws)
   Only e-3Ws registered for commercial use are eligible, and only those with advanced batteries qualify for the demand incentive.
3. Electric buses (e-buses)
   The scheme aims to incentivize the adoption of e-buses in nine major cities.
4. E-ambulances
   The eligibility criteria for e-ambulances are being developed in consultation with the Ministry of Health and Family Welfare (MoHFW).
5. E-trucks
   The scheme aims to encourage the adoption of e-trucks to reduce CO2 emissions. 

The PM E-DRIVE scheme, or the Prime Minister's Electric Drive Revolution in Innovative Vehicle Enhancement, offers financial support to small and medium enterprises (SMEs) in several ways, including:

1. Demand incentives: Offers subsidies for the purchase of electric vehicles (EVs) like e-2 wheelers, e-3 wheelers, e-ambulances, and e-trucks

          The incentives include: 

1. Subsidies
   For e-2 wheelers (e-2W), the subsidy is ₹10,000 per vehicle until the end of FY25, and ₹5,000 in FY26. For e-3 wheelers (e-3W), the subsidy is ₹25,000 this fiscal, which will be halved in FY26. The L5 category of e-3Ws will receive a subsidy of ₹50,000 per vehicle this fiscal, and be halved to ₹25,000 in FY26
2. E-vouchers
   Aadhaar-authenticated e-vouchers are generated for EV buyers at the time of purchase and sent to their registered mobile numbers. The buyer must sign the e-voucher and submit it to the dealer to avail the incentives. The dealer will also sign the e-voucher and upload it on the PM E-DRIVE portal.
3. Grants
   Funding is provided for the acquisition of electric buses (e-buses), the establishment of charging stations, and the upgrading of the Ministry of Heavy Industries (MHI) testing facilities. 

2. Grants for capital assets: Provides funding for the acquisition of electric buses, the establishment of charging stations, and the upgrading of testing facilities
   PM E-DRIVE scheme provides grants for creating capital assets, such as:

                      I. Acquiring electric buses (e-buses)

                     II. Establishing charging stations

                     III. Upgrading the Ministry of Heavy Industries (MHI) testing facilities

3. Phased manufacturing program (PMP): Promotes domestic manufacturing and strengthens the EV supply chain

A.  The PMP will help India establish a manufacturing base for EV components like battery packs, lithium-ion cells, and more. It will also create jobs in manufacturing and charging infrastructure.

B.  The PM E-DRIVE scheme also offers incentives for purchasing EVs and funds the creation of charging infrastructure.

How it works
The PMP requires companies seeking subsidies to assemble EV components in India, though suppliers can still import parts.

4. Financial support for local sourcing: Provides financial support to EV makers that source components locally. The scheme offers financial support without requiring companies to meet a domestic value addition mandate. The only requirement is that companies assemble components in India.

PM  E-DRIVE scheme success rate in India
The PM E-DRIVE scheme has been successful in promoting electric vehicle (EV) adoption in India, with sales of electric two-wheelers (e-2Ws) and electric three-wheelers (e-3Ws) increasing:

1.  Sales
   In 2024-25, sales of e-2Ws reached 5,71,411 units, and sales of e-3Ws reached 1,164 units.
2. Charging infrastructure
   The scheme allocates ₹2,000 crore to install 22,100 fast chargers for electric four-wheelers, 1,800 for e-buses, and 48,400 for e-two- and three-wheelers. 
3. E-bus market
   The scheme aims to add 14,050 e-buses in the next two years, which could make India's e-bus fleet the second-largest globally after China. 
   

How To Claim Subsidy, Benefits
The government released the official notification of the PM E-DRIVE scheme on 29 September 2024. The entire scheme notification can be downloaded from the official PM E-DRIVE website.

The PM E-DRIVE scheme supports public transportation by promoting mass EV mobility in the country. It will be implemented from 1 October 2024 to 31 March 2026.

Resources: 

https://pmedrive.heavyindustries.gov.in/