Cabinet approves PM EV scheme with INR 10,900 crore outlay for 2 years

NEW DELHI — The Cabinet on Wednesday approved the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ for the promotion of electric mobility in the country with an outlay of INR 10,900 crore for a period of two years.

The scheme by the Ministry of Heavy Industries (MHI) now includes e-vouchers, streamlining the EV buying process easier than ever and paves the way for electric ambulances — a crucial step towards integrating EVs into the health sector.

According to the Cabinet, subsidies/demand incentives worth INR 3,679 crore have been provided to incentivise 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.

A sum of INR 4,391 crore has been provided for the procurement of 14,028 e-buses by STUs/public transport agencies.

INR 500 crore has been allocated for incentivising e-trucks. Incentives will be given to those who have a scrapping certificate from MoRTH approved vehicle scrapping centres (RVSF).

The scheme also proposes the installation of 22,100 fast chargers for e-4 Ws, 1,800 fast chargers for e-buses and 48,400 fast chargers for e-2W/3Ws. The outlay for EV PCS will be INR 2,000 crore.

The ministry said it is introducing e-vouchers for EV buyers to avail demand incentives under the scheme.

“At the time of purchase of the EV, the scheme portal will generate an Aadhaar authenticated e-voucher for the buyer. A link to download the e-voucher shall be sent to the registered mobile number of the buyer,” the Ministry said.

The scheme allocates INR 500 crore for the deployment of e-ambulances.

The performance and safety standards of e-ambulances will be formulated in consultation with MoHFW, MoRTH and other relevant stakeholders.

In view of the growing EV ecosystem in the country, the test agencies will be modernised to deal with the new and emerging technologies to promote green mobility.

The upgradation of testing agencies with an outlay of INR 780 crore under the aegis of the Ministry has been approved, said the Cabinet.