EV Industry Expects PM E-Drive To Boost Electric Mobility

EV Industry Expects PM E-Drive To Boost Electric Mobility

A day after the Union Cabinet chaired by the Prime Minister Narendra Modi approved the proposal of Ministry of Heavy Industries (MHI) for the implementation of scheme titled ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ for the promotion of electric mobility in the country, several industry leaders reacted to the development today.

The scheme has an outlay of Rs 10,900 crore over a period of two years. The major components of the scheme are subsidies/Demand incentives worth Rs.3,679 crore have been provided to incentivize 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.

Raman Bhatia, Founder & MD, Servotech Power Systems Ltd. said, “The government’s decision of supporting 88,500 EV charging sites nationwide will definitely act as a wonderful opportunity for the industry’s players and major stakeholders. It will give them a launchpad to establish a well-connected charging network. Supporting the ideals of Aatmanirbhar Bharat through domestic manufacturing and driven by the PMP which will reduce imports, boost domestic manufacturing will make India a leader in domestic manufacturing and strengthen the EV supply chain. Apart from addressing concerns like environmental pollution, and fuel security, this scheme will speed up the process of generating employment opportunities including in EV manufacturing and the establishment of charging infrastructure.”

Abhijeet Sinha, Program Director at NHEV (National Highways for Electric Vehicles) said, “The cabinet decision to outlay Rs. 780 Crore for modernizing test agencies to deal with new and emerging technologies to promote green mobility was need of the hour. It precisely came in time when India is making strides towards reducing logistics costs from 14% to 9%, with trucking accounting for a significant portion of emission and National Highways for EV (NHEV) commenced commercial test runs to induct 5% e-trucks in the logistic sector to accelerate their adoption.”

He also added, “A sum of ₹ 500 crore provided in PM E DRIVE for incentivising adoption of e-trucks may become a gamechanger with ₹500 Crore Blended Climate Financing Instrument released by Ease of Doing Business 3 days ago for e-trucks while starting their technical trials at Chennai. This PPP instrument is expected to perform matching grant role from private capital to bridge Viability Gap Funding.”

Subburathinam P, Chief Strategy Officer, TeamLease Services Limited said, “The PM E-DRIVE scheme will create a transformative opportunity for employment in EV sector as this move will boost the sector. Expanding EV manufacturing, deploying e-buses, and building charging infrastructure will create thousands of new jobs across sectors, from engineering and manufacturing to service and maintenance. This initiative will equip India’s workforce for a greener and more sustainable future.”