Union Cabinet approves PM E-DRIVE Scheme with Rs 109 billion outlay to boost electric mobility

The Union Cabinet has approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, with a Rs 109 billion budget over two years, aimed at accelerating electric mobility in India. The scheme provides Rs 36.79 billion in subsidies for electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), ambulances, trucks, and other emerging EVs, targeting 2.479 million e-2Ws, 316,000 e-3Ws, and 14,028 e-buses.

Buyers will receive demand incentives through an Aadhaar-authenticated e-voucher system. Key allocations include Rs 5 billion for e-ambulances and Rs 43.91 billion to procure e-buses, prioritizing those replacing old vehicles under the MoRTH Vehicle Scrapping Scheme. An additional Rs 5 billion has been set aside to incentivize e-trucks with scrapping certificates.

The scheme also invests Rs 20 billion in installing electric vehicle public charging stations (EVPCS) in high EV penetration cities and selected highways. This includes 22,100 fast chargers for electric four-wheelers, 1,800 for e-buses, and 48,400 for e-2Ws and e-3Ws. Rs 7.80 billion is also earmarked to modernize MHI’s testing agencies for emerging EV technologies.

The initiative seeks to bolster domestic EV production and the supply chain through phased manufacturing, contributing to the Aatmanirbhar Bharat vision. The scheme is expected to drive investment, create jobs, and promote sustainable transportation across India.