In News:

The Ministry of Heavy Industries (MHI) recently revised the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-DRIVE) scheme. This recalibration introduces strict "terminal dates" and unit-specific caps to manage the transition from a subsidy-led market to a self-sustaining EV ecosystem.

Context and Evolution

• Launched in October 2024 with a total outlay of ?10,900 crore, the PM e-DRIVE scheme replaces the earlier FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) phases.
• It aims to synchronize India’s transport sector with the Aatmanirbhar Bharat vision and the Panchamrit climate goals.

Revised Timelines and Deadlines

The government has established clear cut-off dates for vehicle registrations to qualify for incentives:

• Electric Two-Wheelers (e-2W): Subsidy extended until 31st July 2026.
• Electric Three-Wheelers (e-3W): Incentives for e-rickshaws and e-carts extended until 31st March 2028.
• L5 Category (High-speed e-3W): This sub-component was officially closed on 26th December 2025 after achieving its target volume.

Key Components and Targets

The scheme operates on a "first-come, first-served" basis and is fund-limited. If the budget is exhausted before the terminal dates, the portal will close automatically.

A. Demand Incentives and Caps

To ensure support reaches the mass market, the scheme imposes ex-factory price ceilings:

Vehicle Category                        Ex-Factory Price Cap                Unit Support Cap

Electric 2-Wheelers                      ?1.5 Lakh                               ~24.79 Lakh units

Electric 3-Wheelers                      ?2.5 Lakh                              ~3.16 Lakh units*

e-Rickshaws & e-Carts              -                                               39,034 units

Note on Incentives: The subsidy has been recalibrated to approximately ?2,500 per kWh, with a maximum cap of ?5,000 for e-2Ws and ?12,500 for e-3Ws.

B. Infrastructure & Specialized Segments

• Public Transport: Allocation of ?4,391 crore for the procurement of 14,028 e-buses across nine major cities (including Delhi, Mumbai, and Bengaluru).
• e-Ambulances & e-Trucks: A combined fund of ?1,000 crore is dedicated to these emerging segments. For e-trucks, incentives are linked to scrapping certificates from MoRTH-approved centers.
• Charging Infrastructure: A budget of ?2,000 crore to install 72,300 public fast chargers (including 22,100 for e-4Ws and 48,400 for e-2Ws/3Ws).

Technology and Quality Standards

• Advanced Batteries: Only vehicles equipped with advanced battery chemistry (e.g., Lithium-ion) qualify. Outdated lead-acid batteries are excluded.
• The "Super App": Developed by BHEL, this digital platform will allow users to locate chargers, check real-time availability, and make payments seamlessly.
• Testing Agencies:?780 crore allocated to modernize MHI testing agencies to ensure high safety and performance standards for domestic EV manufacturing.