Government Launches PM-E Drive Scheme, Allocates INR 10,000 Cr

The government initiated the PM E-DRIVE Scheme, allocating Rs 10,900 crore to accelerate the use of electric vehicles, establish charging infrastructure, and enhance the electric vehicle manufacturing industry in India. The program will be put into effect starting on October 1, 2024 and ending on March 31, 2026.

The EMPS-2024, running from April 1, 2024 to September 30, 2024, is being absorbed into the PM E-DRIVE scheme.

In the PM E-DRIVE scheme, subsidies for electric two-wheelers are determined by battery power at Rs 5,000 per kilowatt hour, with a maximum incentive of Rs 10,000 in the initial year.

In the following year, the price will be reduced by Rs 2,500 per kilowatt hour, with a maximum total gain of Rs 5,000. At present, well-known electric scooter manufacturers such as Ola, TVS, Ather Energy, Hero Vida (Hero Motocorp), and Chetak Bajaj offer models with battery capacities ranging from 2.88-4 kWh, priced between Rs 90,000 and Rs 1.5 lakh.

Speaking at the launch event, Hanif Qureshi, the Additional Secretary in the Ministry of Heavy Industries, announced the introduction of a mobile app for e-vouchers that will be used to access subsidies under the scheme, in order to streamline the entire process.

"One vehicle per Aadhaar will be allowed. As soon as the vehicle is sold, e-voucher will be generated," the additional secretary said.

He further informed that Rs 780 crore being earmarked towards upgradation of testing facilities under PM E-DRIVE scheme is proposed to be utilised for new equipment and technology to be put in place for testing of electric vehicles.