Key Highlights:
- ₹10,900 crore PM E-Drive scheme focuses on electric buses and commercial vehicles.
- There are no subsidies for electric and hybrid cars under this new phase.
- Subsidies for 14,028 electric buses, with ₹10,000 per kWh of battery capacity.
- ₹500 crore was allocated for electric trucks and hybrid ambulances.
The Union Government has introduced a new ₹10,900 crore electric vehicle subsidy scheme called PM E-Drive. This marks the third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) initiative, which has benefited over 1.6 million electric vehicle purchases since its inception in 2015.
Focus Shifts to Public Transport and Commercial Vehicles
Under the PM E-Drive scheme, the government has moved away from providing subsidies for electric and hybrid cars. The new policy focuses on electric buses, commercial vehicles, and essential service sectors. The scheme will subsidize the deployment of 14,028 electric buses, primarily in nine major cities. These buses will be aggregated by Convergence Energy Solutions Ltd (CESL), a state-run enterprise. The government will offer ₹10,000 per kWh of battery capacity as a subsidy for public transport buses, with a total budget of ₹4,391 crore.
Subsidies for Electric Two and Three-Wheelers
The scheme will also promote electric three-wheelers and electric two-wheelers. A budget of ₹2,679 crore has been allocated to subsidize 316,000 electric three-wheelers and 2.48 million electric two-wheelers.
Support for Electric Trucks and Hybrid Ambulances
For the first time, the government is extending EV subsidies to electric trucks and hybrid ambulances. A budget of ₹500 crore has been reserved to promote EV use in essential service sectors and commercial vehicles. Hybrid ambulances are specifically incentivized due to their reliability. However, incentives for trucks will only be provided to those with a scrapping certificate from a government-approved vehicle scrapping center.
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Emphasis on Charging Infrastructure
In addition to demand-side incentives, the PM E-Drive scheme also stresses the importance of expanding EV charging infrastructure nationwide. This is essential for supporting the increasing number of electric buses and commercial vehicles on the roads.
ELCTRIK Speaks
The PM E-Drive subsidy scheme represents a shift in India’s electric vehicle policy, prioritizing public transport and commercial vehicles over passenger cars. The government aims to increase EV adoption in essential services and reduce urban emissions by focusing on electric buses, trucks, and ambulances. The emphasis on charging infrastructure is another critical element, ensuring that the growing EV fleet is supported nationwide. This initiative signals India’s ongoing commitment to a cleaner, greener future in the transportation sector.
