New Delhi, September 20, 2024: The Union Cabinet’s recently approved PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme aims to significantly boost the adoption of electric vehicles in India. The scheme, which will replace the FAME scheme, offers a higher outlay of INR 10,900 crore for a period of two years compared to the INR 10,000 crore initial outlay of FAME-II.
To encourage local manufacturing of EV components, the PM E-DRIVE scheme will incorporate a phased manufacturing program (PMP). Electric vehicle makers sourcing components locally will be eligible for financial support under the scheme, even without mandating domestic value addition. However, local assembly of parts will be required to claim subsidies, while suppliers can import components.
The scheme will provide financial aid to electric two-wheelers and three-wheelers, with the subsidy for electric two-wheelers reduced to INR 5,000 per vehicle from 2025-26 and for large electric three-wheelers capped at INR 25,000 per vehicle.
To prevent subsidy misuse, the Ministry of Heavy Industries (MHI) will implement e-vouchers for EV buyers and promote the installation of electric vehicle public charging stations (EVPCS).
Union Minister of Road Transport and Highways Nitin Gadkari expressed India’s ambition to become the world’s leading automobile industry within the next five years, with the cooperation of electric vehicle manufacturers. This aligns with the government’s push for electric mobility and sustainable transportation.
