Image Source : INDIA TV This scheme is expected to spur investment in the EV sector and associated supply chain.
The Union Cabinet has approved the PM Electric-Drive (E-Drive) Scheme with a budget of Rs 10,900 crore for the next two years. This new initiative aims to accelerate the adoption of electric vehicles (EVs) across India, replacing the flagship Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) programme that was in place for nine years until March. Information and Broadcasting Minister Ashwini Vaishnaw announced the decision, outlining the government’s commitment to promoting sustainable and innovative transportation solutions. The PM E-Drive scheme is expected to provide significant incentives and support to the EV industry, driving growth and reducing the nation’s carbon footprint.
The decision on the PM Electric Drive Revolution In Innovative Vehicle Enhancement (PM E-DRIVE) Scheme was taken at the meeting of the Union Cabinet chaired by Prime Minister Narendra Modi.
Here are key components of the scheme:
The scheme will support 24.79 lakh electric two-wheelers, 3.16 lakh e-three wheelers, and 14,028 e-buses.
Subsidies/demand incentives worth Rs 3,679 crore to incentivise adoption of electric two-wheelers, electric three-wheelers, e-ambulances, e-trucks and other emerging electric vehicles.
A sum of Rs 4,391 crore has also been provided for procurement of 14,028 e-buses by state transport undertakings and public transport agencies.
Rs 500 crore has been earmarked for the deployment of e-ambulances.
Rs 500 crore has been provided for incentivising adoption of e-trucks.
The scheme will also support 88,500 charging sites.
It proposes the installation of 22,100 fast chargers for e-4 Ws, 1800 fast chargers for e-buses and 48,400 fast chargers for e-2W/3Ws.
Green mobility to be promoted
In view of the growing EV ecosystem in the country, the test agencies of MHI will be modernised to deal with the new and emerging technologies to promote green mobility. The upgradation of testing agencies with an outlay of Rs.780 crore under the aegis of MHI has been approved. The scheme promotes an efficient, competitive and resilient EV manufacturing industry thereby promoting Aatmanirbhar Bharat. This will be achieved by incorporating phased manufacturing programme (PMP) which encourages domestic manufacturing and strengthening of the EV supply chain.
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