PM E-DRIVE: Centre notifies US$ 1.30 billion (Rs. 10,900 crore) EV subsidy scheme
- IBEF
- October 1, 2024
The Centre has officially notified the PM E-DRIVE scheme with a total outlay of US$ 1.30 billion (Rs. 10,900 crore). According to the gazette notification, the scheme will be implemented from October 1, 2024, to March 31, 2026, focusing on the faster adoption of electric vehicles (EVs), setting up charging infrastructure, and developing an EV manufacturing ecosystem in India. The PM E-DRIVE will also absorb the ongoing Electric Mobility Promotion Scheme (EMPS) 2024, with the vehicles and expenditures under EMPS being subsumed within the new scheme.
PM E-DRIVE offers subsidies for electric two- and three-wheelers, e-ambulances, e-trucks, and other emerging EV categories. Grants for capital assets like e-buses, charging station networks, and upgrading testing agencies will also be provided. However, the Central Government's efforts will require additional support from State Governments, which are encouraged to provide fiscal and non-fiscal incentives, including exemptions from permits, concessional road tax, toll tax, parking fees, and registration charges. Of the US$ 963.4 million (Rs. 8,070 crore) allocated for EVs, buses will receive US$ 524.2 million (Rs. 4,391 crore), followed by US$ 211.5 million (Rs. 1,772 crore) for two-wheelers. A Phased Manufacturing Programme (PMP) has been introduced to localize EV components. EV chargers need at least 50% domestic value addition (DVA) from December 1, 2024, to qualify for sops. Financial support for electric two-wheelers will be reduced to US$ 59.69 (Rs. 5,000) per vehicle from 2025-26, while the subsidy for electric three-wheelers will be capped at US$ 298.44 (Rs. 25,000) per vehicle. Like the FAME scheme, PM E-DRIVE aims to subsidize locally manufactured vehicles. However, stricter checks have been implemented to prevent the misuse of subsidies, as seen in the previous program.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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