The Union Cabinet led by Prime Minister Narendra Modi has approved the launch of the ‘PM Innovative Upgradation Scheme for Electric Vehicles (PM E-DRIVE)’ to boost the adoption of electric mobility in the country.
With an outlay of Rs 10,900 crore over two years, the scheme replaces the FAME-II subsidies that ended in March after nine years of validity. According to the Union Minister, the FAME-II subsidies support over 1.6 million electric vehicles in the country.
The spending is aimed at boosting the adoption of electric vehicles (EVs), particularly two-wheelers, three-wheelers, hybrid ambulances, buses and trucks, although it excludes electric cars.
Under the new plan, the government aims to support the deployment of 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers and 14,028 electric buses.
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Additionally, demand incentives totalling Rs 3,679 crore will be available for various categories of electric vehicles, including electric trucks and ambulances.
To simplify the process of purchasing electric vehicles, the Ministry of Heavy Industries (MHI) has also introduced Aadhaar-authenticated e-vouchers under the scheme. These e-vouchers will be generated through the scheme portal at the time of purchase and sent directly to the buyer’s registered mobile number. Buyers can present these e-vouchers at dealerships to avail demand incentives.
The dealer will then also sign the e-voucher and upload it on the PM E-DRIVE portal. The signed e-voucher will be sent to the buyer and the dealer via SMS. The signed e-voucher will be essential for the OEM to claim reimbursement of demand incentives under the scheme, the statement said.
A major portion of the total outlay, Rs 4,391 crore, has been allocated for the procurement of 14,028 electric buses for state transport units and public transport agencies.
In addition to this, Rs 500 crore has been allocated to support the deployment of electric ambulances and Rs 500 crore to incentivise the adoption of electric trucks.
The plan also proposes installation of 22,100 4W fast chargers for electric vehicles, 1,800 fast chargers for electric buses and 48,400 2W and 3W fast chargers for electric vehicles. The outlay for EV PCS will be Rs 2,000 crore.
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