Union Cabinet Approves Rs 10,900 Crore PM E-DRIVE Scheme to Boost Electric Mobility

The Union Cabinet has greenlit the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, allocating Rs 10,900 crore over two years. The initiative aims to promote electric vehicles through subsidies and e-vouchers, enhancing public transport and charging infrastructure while addressing air pollution concerns.

The Union Cabinet has approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme with a staggering outlay of Rs 10,900 crore over two years. This initiative, spearheaded by the Ministry of Heavy Industries (MHI), aims to bolster electric mobility across the nation.

Under the scheme, subsidies amounting to Rs 3,679 crore will be provided to incentivise various electric vehicle (EV) categories, including e-2Ws, e-3Ws, e-ambulances, and e-trucks. The program aims to support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses, leveraging an e-voucher system for buyers to avail of these incentives.

When purchasing an EV, buyers will receive an Aadhaar-authenticated e-voucher via the scheme's portal, which they will submit to the dealer to claim demand incentives. The signed e-voucher, once processed, will be essential for auto manufacturers to claim reimbursements.

The scheme allocates Rs 500 crore for e-ambulances and Rs 4,391 crore for procuring e-buses for public transport. The deployment of these buses will be managed by CESL in major cities, and priority will be given to replacing old buses. Additionally, Rs 500 crore is set aside to incentivize e-trucks to combat air pollution.

To address range anxiety, the scheme also plans substantial investments in EV public charging stations (EVPCS) with Rs 2,000 crore allocated for installing fast chargers across cities with high EV penetration and selected highways.

(With inputs from agencies.)