India Launches PM E-Drive Scheme for Electric Vehicles

September 14, 2024

The Indian government has introduced a new plan called the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme. It replaces the previous FAME II program, which ended in March 2024. The main goal of the PM E-Drive scheme is to promote the use of electric vehicles (EVs) across the country. Although the new scheme has a smaller budget compared to the old one, it still focuses on making EVs more common in India.

Overview of the PM E-Drive Scheme

The Ministry of Heavy Industries is in charge of the PM E-Drive scheme. The government has set aside INR 10,900 crore for this program, which will run for two years. The scheme focuses mainly on electric two-wheelers and three-wheelers (like electric scooters, bikes, and auto-rickshaws) but does not include electric or hybrid four-wheelers (like electric cars).

Subsidies and Support

The PM E-Drive scheme provides financial subsidies for:

Electric two-wheelers and three-wheelers
Electric trucks and buses
Electric ambulances

In addition to supporting these vehicles, the scheme aims to build a network of 88,500 electric vehicle charging stations across India. These stations will make it easier for people to charge their EVs, encouraging more people to switch from traditional fuel-powered vehicles to electric ones.

Focus on Electric Buses

One of the key parts of this scheme is its focus on electric buses. The government plans to help state transport units and public agencies purchase 14,028 electric buses. A budget of INR 4,391 crore has been allocated for this.

Fast Charging Infrastructure

The PM E-Drive scheme also includes plans for building a network of fast chargers for different types of electric vehicles:

22,100 chargers for electric four-wheelers
1,800 chargers for electric buses
48,400 chargers for electric two- and three-wheelers

A total of INR 2,000 crore has been set aside to develop this charging infrastructure. This will help reduce concerns about where people can charge their EVs, making the transition to electric vehicles smoother.

Industry Response

The Indian auto industry has responded positively to the PM E-Drive scheme. Leaders from major companies like Ola and the Mahindra Group have praised the initiative. They believe this scheme will not only speed up the adoption of electric vehicles but also improve consumer confidence by ensuring that charging infrastructure is more widely available.

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