The Indian government’s new PM E-Drive scheme aims to accelerate the adoption of electric vehicles (EVs) in India. With a budget of INR 10,900 crore, the scheme provides subsidies for electric two-wheelers, three-wheelers, trucks, buses, and ambulances. Additionally, it supports the installation of 72,300 EV charging stations across the country.
Key features of the scheme include:
- Reduced subsidies for electric two-wheelers: Unlike the previous FAME II scheme, PM E-Drive offers significantly reduced subsidies for electric two-wheelers.
- Inclusion of electric trucks and buses: The scheme extends subsidies to electric trucks and buses for the first time, addressing the concerns of manufacturers and promoting their adoption.
- Focus on electric ambulances: The government aims to promote the use of electric ambulances for patient transport by providing subsidies and developing performance standards.
- Aadhaar-based e-voucher system: To prevent subsidy fraud, the government has implemented a new system requiring buyers to obtain Aadhaar-authenticated e-vouchers before purchasing eligible vehicles.
Overall, the PM E-Drive scheme represents a more targeted approach to India’s electric vehicle revolution. By focusing on public transport, charging infrastructure, and transparent subsidy mechanisms, the government is working towards a more sustainable and widespread adoption of EVs in the country.
This article is based on JMK Research report.