Ministry of Heavy Industries has notified PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme.
More about the News
PM E-DRIVE Scheme builds upon previous initiatives such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME-I), 2015 and FAME-II (2019) programs.
Electric Mobility Promotion Scheme 2024 (EMPS-2024) has been also subsumed under it.
EMPS 2024 was launched in July 2024 for faster adoption of electric two-wheeler (e-2W) and three-wheeler (e-3W).
About PM E-DRIVE Scheme
Objective: Expedite the adoption of Electric Vehicles (EVs) by providing upfront incentives for their purchase, as well as by facilitating the establishment of essential charging infrastructure for EVs.
Also, it aims to promote EVs to reduce the environmental impact of transportation and improve air quality.
Fund Allocation: Rs 10,900 crore
Time Period: 2024-26
Targets:
Support e-2Ws, e-3Ws, and e-buses
Installation of 22,100 fast chargers for e-4Ws, 1800 fast chargers for e-buses and 48,400 fast chargers for e-2W/3Ws.
Nodal Ministry: Ministry of Heavy Industries
Project Implementation and Sanctioning Committee (PISC), an Inter-ministerial empowered committee, headed by Secretary (Heavy Industries) is constituted for overall monitoring, sanctioning and implementation.
Key Features of the scheme
Subsidies: Demand incentives for consumers (buyers/end users) to purchase certain categories of EVs (refer to the infographic).
Aadhaar authenticated e-Vouchers for EV buyers will be generated through PM E-DRIVE app/portal to reduce the upfront purchase price of EVs.
The amount will be reimbursed to the original equipment manufacturer (OEM) by the Government of India.
Proposed incentive (based on battery capacity i.e. energy content measured in kWh): 5,000 per kWh in FY 2024-25 and ₹2,500 per kWh in FY 2025-26 for e-2W and e-3W categories (both capped at 15% of ex-factory price).
Grants for creation of capital assets: Includes e-buses, establishment of a network of Electric vehicle public charging stations (EVPCS) & upgradation of identified testing agencies.
Support for e-buses will be provided through State/ city transport undertakings (STUs) on operational expenditure (OPEX)/ gross cost contract (GCC) model.
e-buses with ex-factory price less than ₹2 crore will be incentivised.
EVPCS shall be installed in the selected cities (9 cities initially like Mumbai, Delhi, Bangalore, etc) with high EV penetration and also on selected highways.
Charging infrastructures will be established as per Ministry of Power (MoP) “Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure-2024” and further amendments (refer box).
Project management agency (PMA): The Scheme shall be implemented through a PMA, which shall be responsible for providing secretarial, managerial and implementation support.
Other important Features:
Phased Manufacturing Programme (PMP) has to be followed by OEMs and EV charging infrastructure/ public charging stations to be eligible for support.
Incentive/ grant payable under the Scheme are independent of and in addition to incentives given under production linked incentive (PLI) scheme for automobile and auto components industry (PLI-Auto) and PLI scheme for advanced chemistry cell (PLI-ACC).
Encourages states to offer fiscal and non-fiscal incentives, such as road tax concessions, toll exemptions, and parking fee reductions to further promote EV adoption.
About Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure-2024
Objective: To drive EV adoption by making charging stations safe, reliable and accessible; etc.
Key features of the 2024 guidelines:
Implementation Mechanism: Bureau of Energy Efficiency (BEE) will act as the Central Nodal Authority to monitor the implementation.
Coverage: These guidelines shall be applicable to
Public spaces: Commercial complexes, railway stations, petrol pumps, airports, metro stations, etc.
Private Space: Office buildings, educational institutions, hospitals, etc.
Provision of public land for Public Charging Stations (PCS)
Government/Public entities shall offer land for the installation of PCS at a subsidized rate to the Government/Public /Private Entity.
This will be based on a revenue-sharing model where the land-owning agency receives 1 per kWh of electricity used for charging at the station.
Location of PCS:
By 2030, there should be at least one charging station within a 1 km x 1 km grid in urban areas.
Along highways, charging stations will be placed every 20 km for regular EVs and every 100 km for long-range and heavy-duty vehicles like buses and trucks.
Centralized Platform: BEE, in collaboration with State Nodal Agencies (SNAs), will maintain a national database of PCS nationwide.
Other:
All EV Supply Equipment shall comply with Bureau of Indian Standards (BIS) standards.
Tariffs will be lower during solar hours, promoting the use of renewable energy for EV charging.
Also, the cost of electricity at charging stations will not exceed the ‘Average Cost of Supply’ until March 2028.
Related News: PM-eBus Sewa-Payment Security Mechanism (PSM) scheme
Cabinet has approved PM-eBus Sewa-Payment Security Mechanism (PSM) scheme for procurement and operation of e-buses by Public Transport Authorities (PTAs).
Key features of the scheme-
Supports deployment of more than 38,000 e-Buses from 2024-25 to 2028-29.
Operation of such buses will be supported for a period of up to 12 years from the date of deployment.
Public Private Partnership on Gross Cost Contract (GCC) model.
PTAs are not required to pay the upfront cost of the bus
Original equipment manufacturer (OEM)/operators procure and operate e-buses for PTAs with monthly payments.
Timely payments to OEMs/operators to be ensured through a dedicated fund.
Implementing agency: Convergence Energy Services Limited (CESL)
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