The Indian government has introduced the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme, providing subsidies for electric two-wheelers, three-wheelers, trucks, buses, and ambulances. This two-year program, replacing the FAME scheme, has a budgetary outlay of ₹10,900 crore and aims to boost electric vehicle adoption by offering incentives for over 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 electric buses. The scheme also includes the development of 88,500 charging stations to enhance infrastructure.
Subsidies and Incentives Under PM E-Drive
Under PM E-Drive, ₹3,679 crore has been allocated for demand incentives, while ₹4,391 crore is dedicated to electric bus procurement for state transport units and public transport agencies. Over 14,000 electric buses will be deployed, with demand aggregation managed by CESL in cities with populations over 40 lakh, including Delhi, Mumbai, Kolkata, and more. The government is also focusing on intercity and interstate electric bus services in collaboration with state authorities.
Expanding Charging Infrastructure Across India
Charging infrastructure will be expanded with 22,100 fast chargers for electric four-wheelers, 1,800 for electric buses, and 48,400 for two- and three-wheelers, with an outlay of ₹2,000 crore. This significant boost in infrastructure is crucial to overcoming the challenges of limited charging options, making electric vehicle ownership more convenient for users.
Focus on Localization and Technology Development
The scheme’s emphasis on localization ensures that incentives are tied to developing indigenous technologies and supply chains, as highlighted by Union Minister Ashwini Vaishnaw. Additionally, ₹780 crore has been set aside to upgrade test agencies to support green mobility and emerging technologies. This will help foster the development of local expertise and capabilities in electric vehicle manufacturing and related technologies.
Current EV Adoption Rates in India
Electric vehicle adoption in India is currently at 7%, with electric two-wheelers accounting for 56% of sales and three-wheelers making up 38%. Affordability and limited charging infrastructure have been significant barriers, and subsidies under PM E-Drive are expected to play a critical role in lowering the cost of EVs, encouraging wider adoption.
PM-eBus Sewa Scheme: Transforming Public Transport
In parallel, the PM-eBus Sewa-Payment Security Mechanism (PSM) scheme has also been approved. With an outlay of ₹3,435 crore, the scheme aims to deploy over 38,000 electric buses by 2028-29. This initiative focuses on improving public transportation through electric buses while addressing concerns of payment defaults faced by OEMs under the gross cost contract (GCC) model. The PSM ensures timely payments to OEMs via a dedicated fund, fostering confidence in the electric bus procurement process.
Driving India’s Green Mobility Future
The government remains committed to transforming India’s transportation landscape by promoting green mobility, reducing emissions, and addressing the challenges that have hindered electric vehicle adoption so far. With schemes like PM E-Drive and PM-eBus Sewa, the aim is to make eco-friendly transportation more accessible, efficient, and sustainable across the country.