New Delhi2 days ago
- copy link
The central government has approved a new subsidy scheme ‘E-Drive Scheme’ to promote electric vehicles. This scheme has been introduced for two years. With this new scheme, electric two-wheelers will become cheaper by up to Rs 10,000.
This was said by Union Heavy Industries Minister HD Kumaraswamy on Thursday. In a program of SIAM, he said that the new scheme will reduce the prices of e-bikes and e-scooters by up to Rs 10,000. At the same time, the price of electric three-wheelers will come down by up to Rs 50,000.
The Union Cabinet has approved the PM e-Drive scheme for battery-operated two-wheelers, ambulances, trucks and three-wheelers with an outlay of Rs 10,900 crore over a period of two years. 100% support will be provided for charging infrastructure at 88,500 sites under PM e-Drive.
Subsidy available under the new scheme
| Vehicle Type | Quantity | Subsidy (per kWh) | Total Expenses |
| Electric two wheeler (e2w) | 24.79 Lakh | First year- ₹5000 (total ₹10,000) Second year – ₹2500 (total ₹10,000) | ₹1,772 crore |
| Electric Three-Wheelers (e3w) | 3.16 Lakh | First year- ₹50,000 Second year – ₹25,000 | ₹907 crore |
| Electric Buses | 14,028 | Amount not fixed | ₹4,391 crore |
| Hybrid Ambulances | not fix | Amount not fixed | ₹500 crore |
The amount of subsidy on e-buses is not decided Union Minister Kumaraswamy said the amount of subsidy for electric buses has not been decided. He said the target is to achieve 10% EV penetration in the two-wheeler segment and 15% EV penetration in the three-wheeler sector by the end of the scheme.
The Union Minister said that electric cars and hybrid vehicles are not included in the PM E-Drive scheme. Electric cars are already being taxed at a lower GST slab of 5%. Apart from this, benefits are also available under the Auto PLI scheme.
Aadhaar authenticated e-vouchers will be prepared Under the scheme, the Heavy Industry Ministry will introduce e-vouchers for EV buyers. Aadhaar-authenticated e-vouchers will be generated for buyers on the scheme portal at the time of vehicle purchase. These vouchers will ensure that there is no irregularity in providing subsidy to the buyer from the dealership.
Focus on charging infrastructure The government’s focus is on strengthening the charging infrastructure for electric vehicles in India. Therefore, more than 18% of the total outlets have been reserved for charging under the scheme. Under the scheme, there is a plan to install 22,100 fast chargers for electric 4-wheelers, 1,800 fast chargers for E-buses and 48,400 fast chargers for electric 2-wheelers/3-wheelers.
13,21,800 EVs subsidized under FAME-II scheme
PM e-Drive follows the second phase of the Faster Adoption and Manufacturing of Electric Vehicles, which ran for five years and ended on March 31, 2024. During that period, 13,21,800 EVs were subsidised under the FAME-II scheme with a total outlay of Rs 11,500 crore.
The scheme was later replaced by the Rs 500-crore Electric Mobility Promotion Scheme (EMPS) 2024, which was valid for four months and extended till September 31, 2024.
