Modi government announces ₹10,900cr subsidy scheme to boost EV adoption
The Indian government has launched a new initiative, the PM Electric Drive Revolution In Innovative Vehicle Enhancement (PM E-DRIVE) scheme, with an allocation of ₹10,900 crore for two years. This subsidy scheme is aimed at accelerating the adoption of electric vehicles (EVs) in India. It was approved during a Union Cabinet meeting led by Prime Minister Narendra Modi, and announced by Information and Broadcasting Minister Ashwini Vaishnaw.
PM e-Drive to replace FAME program
The PM E-DRIVE scheme is set to replace the nine-year-old Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME) program, which concluded in March. The new initiative will support nearly 24.79 lakh electric two-wheelers, more than 3.16 lakh e-three wheelers, and around 14,028 e-buses. Additionally, it plans to back approximately 88,500 charging sites across the country.
Subsidies and incentives for EV adoption
The PM E-DRIVE scheme includes subsidies and demand incentives worth ₹3,679 crore to encourage the adoption of electric two-wheelers, three-wheelers, e-ambulances, e-trucks, as well as other emerging EVs. An additional sum of ₹4,391 crore has been allocated for the procurement of 14,028 e-buses, by state transport undertakings and public transport agencies. This financial support is a significant component of the scheme's strategy to boost EV use in India.
Scheme earmarks funds for e-ambulances and e-trucks
The PM E-DRIVE program has set aside ₹500 crore each for the deployment of e-ambulances and incentivizing the adoption of e-trucks. The allocation for e-ambulances marks a new government initiative aimed at promoting their use for comfortable patient transport.
