The Government of India has launched various schemes to accelerate the adoption of electric vehicles, such as the FAME-I, FAME-II, and EMPS. However, these schemes ended in September 2024. 

To maintain the continuity of support for Electric Vehicles (EVs), the Ministry of Heavy Industry (MHI) launched the PM Electric-Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme on 29 September 2024. 

Read on to find out more about the PM E-DRIVE scheme, including its eligibility, subsidy, benefits, application process and subsidy claim process.

What is PM E-DRIVE Scheme?

The PM E-DRIVE scheme supports public transportation by promoting mass EV mobility in the country. It will be implemented from 1 October 2024 to 31 March 2026. The primary objective of the PM E-DRIVE scheme is to accelerate the adoption of EVs by providing incentives for their purchase, setting up EV charging infrastructure and developing EV manufacturing ecosystem in the country. 

This scheme addresses concerns regarding fuel security and reduces environmental pollution. It will spur investment in the EV sector and associated supply chains, create employment opportunities along the value chain, and make significant progress in promoting sustainable transportation solutions. Employment will also be generated through manufacturing and the establishment of EV charging infrastructure. 

The cabinet has approved the PM E-DRIVE scheme with an outlay of Rs.10,900 crore for 2 years. Further, the number of vehicles and the expenditure under EMPS-2024 for e-2 wheelers and e-3 wheelers, which ended on 30 September 2024, is being subsumed under the PM E-DRIVE Scheme. 

PM E-DRIVE Scheme notification

The government released the official notification of the PM E-DRIVE scheme on 29 September 2024. The entire scheme notification can be downloaded from the official PM E-DRIVE website.

PM E-DRIVE Scheme launch date

The launch date of the PM E-DRIVE scheme is 1 October 2024 and will be effective till 31 March 2026.

PM E-DRIVE Scheme eligibility

The following vehicles are eligible to get the benefits provided under the PM E-DRIVE scheme:

• e-2 Wheelers (e-2Ws)
• e-3 Wheelers (e-3Ws), including registered e-carts, e-rickshaws and L5 category vehicles
• e-buses
• e-ambulances
• e-trucks
• Charging infrastructures
• Testing agencies under MHI

However, to encourage advanced technologies, this scheme provides benefits only for EVs fitted with advanced batteries. Individual beneficiaries will be eligible for a subsidy for only one EV of a particular category. 

Benefits under the PM E-DRIVE scheme will not be provided to EVs purchased by any Central or State Government department or its agencies.

PM E-DRIVE Scheme benefits

• Subsidies to EVs

This scheme will provide subsidies and demand incentives worth Rs.3,679 to incentivise e-2Ws, e-3Ws, e-trucks, e-ambulances and other emerging EVs. It will support 3.16 lakh e-3Ws, 24.79 lakh e-2Ws and 14,028 e-buses. 

To emphasise providing affordable and environmentally friendly public transportation options, the scheme is also applicable mainly to e-2Ws and e-3Ws registered for commercial purposes and privately or corporate-owned registered e-2Ws. 

• E-voucher to claim subsidies

The scheme provides EV buyers with an e-voucher to avail of the subsidy under the scheme.  At the time of purchasing the EV, an e-KYC Aadhaar face authenticated e-Voucher will be generated on the scheme portal for the customer. A link to download the e-voucher will also be sent to the customer’s registered mobile number.

• Deployment of e-ambulances

Under this scheme, Rs.500 crore has been allocated to deploy e-ambulances. This is a new initiative of the Government of India to promote the usage of e-ambulances for comfortable patient transport. 

• Procurement of e-buses

Under this scheme, Rs. 4,391 crore has been provided for procuring 14,028 e-buses by State Transport Undertakings (STU) or public transport agencies. Convergence Energy Services Limited (CESL) will do the demand aggregation in the nine cities with more than 40 lakh population, namely Mumbai, Delhi, Chennai, Kolkata, Surat, Ahmedabad, Pune, Bangalore, and Hyderabad. Interstate and Intercity e-buses will also be supported in consultation with states.

• Deployment of e-trucks

Trucks are a major contributor to air pollution. Thus, this scheme will promote the deployment of e-trucks in the country. Under this scheme, Rs.500 crore has been allocated to incentivise e-trucks. Incentives will be given to those with a scrapping certificate from the MoRTH-approved Registered Vehicle Scrapping Facility (RVSF). 

• Installation of EV charging stations

This scheme proposes installing 22,100 fast chargers for e-4Ws, 48,400 fast chargers for e-2Ws or 3Ws and 1800 fast chargers for e-buses. The outlay for the EV Public Charging Stations (EVPCS) is Rs.2,000 crore. This scheme addresses the range anxiety of EV buyers by promoting the installation of EVPCS. The EVPCS will be installed in selected highways and cities with high EV penetration. 

• Upgradation of testing agencies

The test agencies of the MHI will be modernised to deal with emerging technologies and promote green mobility. Testing agency upgradation with an outlay of Rs.780 crore under the supervision of MHI has been approved.

PM E-DRIVE Scheme subsidy

For e-buses, the maximum incentive per vehicle will be as provided below or 20% of the cost of the vehicle (as per prices by CESL), whichever is lower:

How to apply PM E-DRIVE Scheme?

Original Equipment Manufacturers (OEMs) must register for the PM E-DRIVE scheme to claim reimbursement of the subsidy amount from the government upon selling eligible EVs. An OEM means a proprietor, private company, public company or partnership firm manufacturing any EV covered under the PM E-DRIVE scheme.

All OEMs will deduct the incentive amount from the total price of the EV at the time of billing to their dealers, which will be calculated after including all GST/taxes, etc. Similarly, all dealers will consider the cost to the dealer as the total cost arrived just before deducting the incentive by the OEM and use this cost to calculate the total cost to the customer. The dealer will pass on the incentive it received from OEM to the customer or end-user at the time of sale of the EV. 

The detailed procedure for applying for the scheme and claiming the subsidy is provided in the sections below. 

PM E-DRIVE Scheme registration online

All OEMs can register online to avail of the PM E-DRIVE scheme benefits. OEMs already registered under Phase II of the FAME-India scheme are also required to submit fresh applications for registration. The procedure for PM E-DRIVE scheme registration online is as follows:

Step 1: Visit the official PM E-DRIVE portal.

Step 2: Click the ‘Login’ button and select the ‘OEM’ option.

Step 3: Scroll down and click on the ‘Register’ button.

Step 4: Fill out the OEM Pre-Registration form, upload the required documents and click ‘Get OTP’. 

Step 5: Enter the OTP and click ‘Submit’.

PM E-DRIVE Scheme subsidy claim

MHI has introduced e-vouchers for EV buyers to claim subsidies under the PM E-DRIVE scheme. At the time of the EV registration with the Regional Transport Office (RTO), the dealer will generate an e-voucher from the PM E-DRIVE portal with a unique identification number. 

The dealer will carry out the buyer’s Aadhaar e-KYC authentication using face modality through the PM E-DRIVE app and generate the Aadhaar-authenticated e-voucher. A link to download the e-voucher will be sent to the buyer’s registered mobile number. 

The buyer will sign the e-voucher and submit it to the dealer to avail of the subsidy under the scheme. Thereafter, the dealer will also sign the e-voucher and upload it on the PM E-DRIVE portal. The signed e-voucher will also be sent to the buyer and dealer via SMS. The signed e-voucher is essential for the OEM to claim reimbursement of the subsidy amount under the scheme. 

The PM E-DRIVE scheme promotes an efficient and resilient EV manufacturing industry. Through demand incentives, it will support around 25 lakh e-2Ws, 3 lakh e-3Ws, and 14,000 electric buses. The scheme aligns with the government’s broader push for e-mobility to reduce dependency on fuel imports and greenhouse gas emissions. It will play a crucial role in achieving the 30% EV penetration target by 2030.

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