PM E-DRIVE SCHEME

Prelims – Indian polity and Governance

Mains - GS II |Government Policies & Interventions

Why in News?

As of now, 10.27 lakh Electric Vehicles (EVs) have been sold under the PM E-DRIVE scheme, which has led to a reduction of 230K tonnes of CO2 emission.

• PM E-DRIVE Scheme - PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme.
• Launched by - Ministry of Heavy Industry.
• Aim - To promote electric mobility in India by accelerating EV adoption, developing charging infrastructure, and fostering a robust EV manufacturing ecosystem.
• Duration - 2024 – 2026.
• Eligible category of vehicles
  • Buses (only electric buses) (e-bus),
  • Three-Wheelers (electric) including registered e-rickshaws & e-carts and L5 (e-3W),
  • Two wheelers (electric) – e-2W,
  • e-ambulances (electric, plug in hybrid & strong hybrid), and
  • e-trucks and other new emerging EV categories (to be notified subsequently).
  • Charging infrastructures
  • Testing agencies under MHI
• Components
• Subsidies - Demand Incentives for e-2W, e-3W, e-ambulances, e-trucks and other new emerging EV categories.

Demand incentive is a financial (Subsidy) benefit offered to stimulate consumer demand to encourage the adoption of EV.

• • PM E-DRIVE e-Voucher - The Ministry of Heavy Industry (MHI) is introducing e-Vouchers for EV customers to avail the demand incentive under the scheme.
• Proposed Incentive - Demand incentive of Rs.5,000 per kWh for e-2Ws/e-3Ws registered in FY 2024-25, and Rs.2,500 per kWh for FY 2025-26.
• Grants for creation of capital assets - e-buses, establishment of network of charging stations & upgradation of testing agencies of MHI.
• Deployment of e-ambulances - The scheme allocates funds for the deployment of e-ambulances.
• Deployment of public charging stations - The scheme promotes the installation of electric vehicle public charging stations (EVPCS).
• These EVPCS shall be installed in the selected cities with high EV penetration and also on selected highways.
• Administration – It includes IEC (Information, Education & Communication) activities and fee for project management agency (PMA).
• Benefits under the PM E-DRIVE scheme will not be provided to EVs purchased by any Central or State Government department or its agencies.

Reference

India Govt | PM E-DRIVE Scheme