Sources told CNBC-TV18 that the new scheme will entail an outlay of about ₹10,900 crore, with a major chunk of the funds going towards promoting electric buses and offering subsidies for the purchase of electric vehicles (EVs).
Launched in 2015, the FAME initiative was introduced to encourage faster adoption of electric and hybrid vehicles in India. The scheme has successfully completed two phases: FAME-II, which was launched in 2019 and provided Rs 10,000 crore in subsidies supporting over 8,32,000 electric vehicles across various segments including e-2Ws (two-wheelers), e-3Ws (three-wheelers) and electric buses.
The proposed PM E-Drive is expected to replace the FAME-III phase and sources say it will continue to promote electrification of public and shared transport, including electric buses and ambulances. Critical elements of the PM E-Drive scheme include the government’s effort to ensure that consumers understand that the subsidies are provided directly by the Centre.
In a major update, sources have also suggested that electric cars for private or shared mobility would not be covered by the new scheme.
Customers who buy electric vehicles in the future will receive a certificate confirming that they have benefited from a central government subsidy under the new scheme.
Read also: FAME 3 is expected to further boost EV adoption, but experts call for policy simplification
There is also a plan to allocate ₹500 crore for electric ambulances, highlighting a broader push towards cleaner public health services.
Besides supporting 2.5 million electric two-wheelers, 316,000 electric three-wheelers and 14,028 electric buses, the new scheme aims to introduce the ‘PM E-Bus Sewa Payment Security Mechanism’ to incentivise the purchase of electric buses for public transport.
As India targets 30% EV penetration by 2030, the plan will be essential to meeting the country’s clean energy and emissions goals.
Additionally, the Cabinet may also approve a proposal to include citizens aged 70 years and above in the Ayushman Bharat scheme and approve an investment of ₹12,500 crore for a hydroelectric project, further underlining the government’s commitment to social welfare and renewable energy projects.
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