Union Cabinet Approves ₹10,900 Crore PM E-DRIVE Scheme to Boost Electric Mobility

New Delhi: In a major step towards promoting electric mobility in India, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme. With an outlay of ₹10,900 crore over two years, the scheme is set to revolutionize the electric vehicle (EV) landscape by providing substantial incentives and boosting infrastructure development across the country.

Key Highlights of the PM E-DRIVE Scheme:

1. Subsidies and Demand Incentives: The scheme allocates ₹3,679 crore in subsidies to incentivize the adoption of electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), ambulances, trucks, and other emerging EVs. It aims to support the procurement of 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.
2. e-Voucher System: MHI is introducing a unique e-voucher system for EV buyers, which will be Aadhaar-authenticated. Buyers will receive a link to download the e-voucher upon purchase, which can be used to avail demand incentives. This voucher will be signed by both the buyer and dealer, facilitating a smooth process for OEMs to claim reimbursement.
3. E-Ambulance Deployment: A new initiative under the scheme is the deployment of e-ambulances with an allocation of ₹500 crore. These electric ambulances aim to provide a more comfortable and eco-friendly patient transport solution, with safety standards developed in consultation with the Ministry of Health, Ministry of Road Transport, and other stakeholders.
4. E-Bus Procurement: The scheme includes ₹4,391 crore for the procurement of 14,028 e-buses in nine cities with populations exceeding 40 lakh, including Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune, and Hyderabad. E-buses will also be supported for intercity and interstate routes, with a focus on replacing old public transport buses in accordance with the MoRTH Vehicle Scrapping Scheme.
5. Incentivizing E-Trucks: With ₹500 crore allocated for e-trucks, the scheme encourages scrapping old polluting vehicles and replacing them with electric alternatives. Incentives will be provided to those with a scrapping certificate from MoRTH-approved scrapping centers.
6. Charging Infrastructure Expansion: The scheme addresses EV owners’ range anxiety by promoting the installation of 22,100 fast chargers for e-4Ws, 1,800 fast chargers for e-buses, and 48,400 fast chargers for e-2Ws and e-3Ws. A total of ₹2,000 crore has been allocated to build charging stations in cities with high EV penetration and on key highways.
7. Modernizing Test Agencies: To keep pace with evolving EV technologies, ₹780 crore has been allocated to upgrade the Ministry of Heavy Industries’ testing agencies. This move will help ensure quality and safety standards for the growing EV ecosystem.

The PM E-DRIVE Scheme is part of India’s broader push toward Aatmanirbhar Bharat (self-reliant India), supporting domestic manufacturing and strengthening the EV supply chain. The scheme’s Phased Manufacturing Program (PMP) will boost investment in the EV sector, promoting local production and reducing dependency on imports.

In addition to promoting environmental sustainability by reducing air pollution, the scheme will also create significant employment opportunities along the EV value chain, from manufacturing to the establishment of charging infrastructure.