Cabinet Approves ₹10900 Crore Scheme for E-Mobility Push

Cabinet Approves ₹10900 Crore Scheme for E-Mobility Push

Sub: Schemes

Sec: Economy

•   Scheme Overview:
  • The Union Cabinet has approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme, with an outlay of ₹10,900 crore.
  • The scheme is aimed at the procurement of e-buses and the setting up of over 72,000 charging stations to promote electric vehicles (EVs) and reduce range anxiety among buyers.
• Duration:
  • The scheme will be valid for two years from its implementation.
• Subsidies and Demand Incentives:
  • The scheme offers subsidies or demand incentives worth ₹3,679 crore for various electric vehicles, including:
    • E-2Ws (Electric Two-Wheelers): Support for 24.79 lakh units.
    • E-3Ws (Electric Three-Wheelers): Support for 3.16 lakh units.
    • E-ambulances and e-trucks are also included under the incentive program.
• E-Bus Procurement:
  • ₹4,391 crore will be allocated for the procurement of 14,028 e-buses by state transport undertakings.

The e-buses will be deployed in 9 cities with populations exceeding 40 lakhs, including:

• Delhi
• Mumbai
• Kolkata
• Chennai
• Ahmedabad
• Surat
• Bangalore
• Pune
• Hyderabad
• Charging Infrastructure:
  • The scheme allocates ₹2,000 crore for the installation of charging stations in cities with high EV penetration and on specified highways.

The PM E-Drive scheme aims to accelerate India’s transition to sustainable mobility, reducing pollution and supporting EV infrastructure.

PM E-DRIVE Scheme

PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) is a government initiative with an outlay of ₹10,900 crore over two years aimed at promoting electric mobility in India.

Key Components of the Scheme:

• Subsidies and Demand Incentives:
  • ₹3,679 crore has been allocated to incentivize the purchase of electric vehicles, including:
    • Electric two-wheelers (e-2Ws)
    • Electric three-wheelers (e-3Ws)
    • Electric ambulances
    • Electric trucks
    • Other emerging EV categories.
• E-Vouchers for EV Buyers:
  • Buyers of electric vehicles will receive an Aadhaar-authenticated e-voucher under the scheme.
  • This e-voucher will be sent to the buyer’s registered mobile number after purchase to avail demand incentives.
• E-Ambulance Deployment:
  • A budget of ₹500 crore has been allocated to deploy electric ambulances.
  • The goal is to provide comfortable and environmentally friendly transport for patients.
  • Performance and safety standards for these e-ambulances will be developed in collaboration with the Ministry of Health & Family Welfare (MoHFW), Ministry of Road Transport & Highways (MoRTH), and other stakeholders.
• Incentives for E-Trucks:
• ₹500 crore is dedicated to promoting e-trucks, which contribute significantly to air pollution.
  • Those holding a scrapping certificate from authorised MoRTH Vehicle Scrapping Centres (RVSFs) will be eligible for incentives under this component.
• Charging Infrastructure:
  • To mitigate range anxiety and support EV growth, ₹2,000 crore will be utilized to install public charging stations (EVPCS).
  • These stations will be set up in cities with high EV penetration and along selected highways.