Govt extends PM E-DRIVE scheme timeline, Pg15

Key Highlights:

• The Centre has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme for electric two-wheelers until March 31, 2028.
• Incentives for electric two-wheelers have been halved to ₹2,500 per kilowatt-hour (kWh) from the previous ₹5,000 per kWh.
• The incentive is now capped at ₹5,000 per vehicle.
• These revised incentives will be applicable for registered electric two-wheelers from April 1, 2025, to March 31, 2028.
• The Ministry of Heavy Industries is the nodal ministry overseeing the scheme.

Detailed Insights:

• The PM E-DRIVE Scheme was launched on September 29, 2024, and became operational from October 1, 2024, succeeding the FAME India Scheme (FAME II) which concluded on March 31, 2024.
• The scheme aims to accelerate the adoption of Electric Vehicles (EVs) and facilitate the establishment of essential charging infrastructure across the country.
• It primarily focuses on mass mobility segments, including electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), e-ambulances, and e-trucks, while explicitly excluding private four-wheelers from central government purchase subsidies.
• The overall outlay for the PM E-DRIVE Scheme is ₹11,900 crore, with its implementation period spanning from April 1, 2024, to March 31, 2028.
• The reduction in incentives for electric two-wheelers indicates a strategic move towards tapering demand support as the EV market matures and manufacturing costs decrease.
• A dedicated fund support of ₹2,767 crore has been allocated by the Ministry of Heavy Industries specifically for electric two-wheelers under this scheme.

Key Concepts Involved:

• PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme: A central government initiative launched by the Ministry of Heavy Industries to promote the adoption of electric vehicles and develop charging infrastructure in India.
• FAME India Scheme (FAME II): The predecessor scheme to PM E-DRIVE, focused on the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India.
• Electric Vehicles (EVs): Vehicles that operate either entirely or partially on electricity, aiming to reduce reliance on fossil fuels and lower emissions.
• Demand Incentives: Financial subsidies or benefits provided by the government to consumers to encourage the purchase of specific products, such as electric vehicles.