Rs 10,900 crore PM E-Drive Launched To Replace FAME 2

No Subsidies For Passenger Cars In Rs 10,900cr PM E-Drive Scheme

By Saur News Bureau/ Updated On Thu, Sep 12th, 2024

The Union Cabinet, on September 11, approved the PM E-Drive Scheme for boosting adoptipn of electric vehicles in India. The PM Electric Drive Revolution In Innovative Vehicle Enhancement (PM E-DRIVE) Scheme earmarks Rs 10,900 crores over the next two years with a sharp focus away from passenger cars to other key categories like 2 wheelers, three-wheelers, ambulances, trucks and other emerging electric vehicles (EVs). The amount earmarked for these is Rs 3769 crores.

Charging networks are in special focus with 100 percent support for charging infrastructure at 88,500 sites. the PM E-Drive scheme is over and above the PLI (Production Lined Incentive) schemes for auto and auto component sectors.

The central government scheme is of course over and above any scheme from state governments, many of which have their own schemes running concurrently as well. The union government is clearly focused on public infrastructure this time.

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In its first component of incentives worth Rs 3,679 crore, the incentives will be reserved for e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs. The scheme will support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.

Rs 4,391 crore has been provided for procurement of 14,028 e-buses by state transport undertakings and public transport agencies.

A sub component called PM-eBus Sewa Payment Security Mechanism of Rs 3,435 crore for the battery-run bus market has also been created. Rs 500 crore each has been provided for incentivising adoption of e-trucks and e-ambulances.

The PM E-Drive Scheme replaces the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) Scheme, which was launched in April 2015 and ran for nine years in two different versions. According to official figures, During the second edition of this scheme, which was valid until March 31, 2024, the government subsidised 13,21,800 EVs with a total outlay of Rs 11,500 crore.