PM E Drive Scheme

Scheme Introduction: A Brief Overview

• Ministry of Heavy Industries gave a proposal to union cabinet to implement new scheme for Electric Buyers and Manufactures.
• Earlier Government of India encouraging people to purchase electric vehicle by providing the subsidy under FAME India Scheme.
• FEMA India Scheme stands for Faster Adoption and Manufacturing of (Hybrid&) Electric Vehicles in India.
• Prime Minister Shri Narendra Modi chaired a union cabinet meeting on 11th of September and discuss the proposal of Ministry.
• Union Cabinet gave its approval to implement new scheme named "PM E Drive Scheme".
• The full name of PM E Drive Scheme is "PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme".
• The other name of this scheme which are common are "Prime Minister E Drive Scheme" or "PM E Drive Yojana".
• The main objective of Government behind starting this scheme is to encourage people to switch for Electric Vehicles so that impact of transportation on environment should be minimal and to improve air quality also.
• Subsidy on the purchase of electric vehicle will be provided under PM E Drive Scheme.
• E Vouchers will be issued in favor of Electric Vehicle Buyers which can be submitted to Dealer to avail the benefit of subsidy on the purchase of E Vehicle.
• List of Electric Vehicles eligible for subsidy under PM E Drive Scheme are :-
  • Buses.
  • Trucks.
  • Ambulances.
  • 3 Wheelers.
  • 2 Wheelers.
• Subsidy will not be provided on the purchase of car under Prime Minister E Drive Scheme.
• Government of India spends around Rs. 10,900/- crores for a period of 2 years for better implementation of this scheme.
• It is to be estimated that 24.79 Lakh E 2 Wheelers, 3.16 Lakh E 3 Wheelers, and 14,028 E Buses will be supported by the subsidy provided.
• In the first year, e-two wheeler will receive a subsidy of Rs 5,000/- per kw hour but the overall benefits will not exceed Rs 10,000/- and in the second year the benefits will be halved by Rs 2,500 per kw hour.
• Subsidy that will be provided on three wheelers, e-rickshaws will receive a subsidy of Rs 25,000 in the first year which will be halved in the second year.
• Vehicles under the L5 categories will receive an incentive of Rs 50,000/- in the first year and it will be halved in the second year.
• Incentives on e-buses is based on its lengths, mini bus of size between 6 to 8 meters will receive Rs 20,00,000, while midi bus of size 8 to 10 meter will receive Rs 25,00,000 lakh and standard buses of 10 to 12 meter size will receive an incentive of Rs 35,00,000 lakh.
• The PM e-Drive scheme is implemented from 1 October 2024 and it will remain active until March 31, 2026.
• Government will also set up Electric Vehicle Public Charging Stations (EVPCS) in selected cities and highways.
• 1,800 Fast Chargers for Electric Buses, 22,100 Fast Chargers for Electric 4 Wheelers and 48,400 Fast Chargers for Electric 2 and 3 Wheelers will be installed under PM E Drive Scheme.
• Very soon the concerned ministry will draft and release the Official Guidelines of PM E Drive Scheme.
• Those guidelines consists application procedure, remaining eligibility conditions and other related information about scheme.
• As soon as we get any information, we will update the same.

Scheme Benefits

• Government of India will provide the following benefits under its newly announced PM E Drive Scheme : -
  • Subsidy in the form of Demand Incentive will be provided for the purchase of E Vehicle.
  • E Vouchers will be issued to avail the benefit of Demand Incentive/ Subsidy.
  • Electric 2 Wheeler, 3 Wheeler, Ambulances, Truck and Buses are eligible for subsidy.
  • Electric Vehicle Public Charging Station will be Installed.
    

    Vehicle Type	Number of Vehicle to receive benefits		Incentive Benefits
    	2024-25	2025-2026	2024-25	2025-2026
    Registered e-two wheeler.	10,64,000	14,15,120	Rs 5,000 /kwh (max. Rs 10,000/-)	Rs 2,500/ kwh (max. Rs 5,000/-)
    Registered e-rickshaw and e-cart.	43,371	67,225	Rs 5,000 /kwh (max. Rs 25,000/-)	Rs 5,000 /kwh (max. Rs 12,500/-)
    Registered e-Three wheeler (L5)	80,546	1,24,846	Rs 5,000 /kwh (max. Rs 50,000/-)	Rs 5,000 /kwh (max. Rs 25,000/-)
    Registered e-buses	5,828	8,200	Rs 10,000 /kwh	Rs 10,000 /kwh
    E-Ambulance/E-Truck and others	T.B.A	T.B.A	T.B.A	T.B.A

Distribution of Budget

• Rs. 10,900/- Crore budget of PM E Drive Scheme will be spend in the following way :-

  Budget Amount (in crore)	Purpose
  Rs. 3,679/-	To provide Subsidy/ Demand Incentive on the purchase of : - Electric 2/ 3 Wheeler. Electric Ambulances. (Rs. 500/- Crore) Electric Trucks. (Rs. 500/- Crore)
  Rs. 4,391/-	For E Buses purchased by State Transport Undertakings or Public Transport Agencies.
  Rs. 2,000/-	To Install EV Public Charging Stations.
  Rs. 780/-	To Modernize Testing Agencies.

Eligibility Requirement

• Subsidy under PM E Drive Scheme will be provided under some circumstances, when buyers and vehicle fulfills the same they are eligible to receive incentive as per the vehicle type : -

  Vehicle must be registered as motor vehicle as per the CMVR (Central Motor Vehicle Rules) Vehicle must be manufactured in India. Vehicle must have obtain PM E-drive eligibility certificate. E-Vehicle must be fitted with advanced batteries. Applicant should be an Indian Citizen. Incentive benefits can be availed only once. Applicant should be a interested buyer of any of the below mentioned Electric Vehicle :- Electric 2 Wheeler. Electric 3 Wheeler. Electric Ambulances. Electric Trucks. Electric Buses.

Required Documents

• Documents that are required to obtain E Voucher to avail the subsidy on the purchase of E Vehicle under PM Drive Scheme are as follows:-
  • Aadhar Card.
  • Mobile Number.
  • PAN Card.
  • ITR. (If Required)

Steps to Apply

• Benefits of subsidy on the purchase of E Vehicles will be provided to buyers by issuing E Vouchers to them.
• EV Buyers can use E Vouchers to avail demand incentive under the scheme.
• Beneficiaries will have to apply for E Voucher under PM E Drive Scheme before applying the EV Vehicle.
• A dedicated portal of PM E Drive Scheme will be made and launched by the Government very soon.
• Official Portal will generate a E Voucher for EV buyers after Aadhar based authentication.
• A link to download the E Voucher will be sent on the registered mobile number of beneficiary.
• EV Buyer will have to download the E Voucher, have to sign it properly and submit it to the dealer to avail the benefit of demand incentive provided under PM E Drive Scheme.
• E Voucher will then signed by the EV Dealer and upload it on PM E Drive Portal.
• Then OEM will claim the reimbursement of demand incentive of PM E Drive Scheme.
• EV Vehicles will be delivered to buyers after deducting the subsidy amount from manufacturers side.
• Further detailed information about Prime Minister E Drive Scheme will be available after its guidleines released.

Relevant Links

• PM E Drive Scheme New Guidelines.
• PM E Drive Scheme Guidelines.
• Ministry of Heavy Industries Website.

Contact Information

• Ministry of Heavy Industries Contact Email :- jsms-mhi@gov.in.
• Ministry of Heavy Industries,
  Udyog Bhawan, Rafi Marg,
  New Delhi - 110011.