The Union Cabinet has approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, with an outlay of Rs 10,900 crore over two years, to promote electric mobility in India. The scheme focuses on incentivising electric vehicles (EVs) and supporting the development of charging infrastructure. Key components include Rs 3,679 crore in subsidies for e-2Ws, e-3Ws, e-ambulances, e-trucks, and emerging EVs. The scheme targets 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.
Buyers will receive demand incentives through an Aadhaar-authenticated e-voucher system. This new initiative also allocates Rs 500 crore for the deployment of e-ambulances, Rs 4,391 crore for procuring 14,028 e-buses for public transport in nine major cities, with priority given to those replacing old vehicles under the MoRTH Vehicle Scrapping Scheme. An allocation of Rs. 500 crore has been made to incentivise e-trucks which have scrapping certificates from authorised scrapping centers.
The scheme also allocates Rs 2,000 crore for the installation of electric vehicle public charging stations (EVPCS). The EVPCS will be installed in the cities which have high EV penetration and also on selected highways. The proposal includes 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.
Additionally, the scheme includes Rs 780 crore for modernising MHI’s test agencies to handle emerging EV technologies. Through a phased manufacturing program, it aims to boost domestic EV manufacturing and strengthen the supply chain under Aatmanirbhar Bharat. The scheme is expected to spur investment, generate employment, and enhance sustainable transportation solutions across the country.
