PM E-DRIVE Scheme

  • 03 Oct 2025

In News:

The Government of India has issued detailed operational guidelines for setting up around 72,300 public electric vehicle (EV) charging stations across the country, backed by an allocation of ?2,000 crore under the broader ?10,900 crore PM E-DRIVE Scheme. This initiative marks a major step towards achieving sustainable mobility and reducing India’s dependence on fossil fuels.

About the PM E-DRIVE Scheme

  • The PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme was launched in October 2024 by the Ministry of Heavy Industries (MHI).
  • It is a flagship program designed to accelerate EV adoption, strengthen charging infrastructure, and develop a robust domestic manufacturing ecosystem.
  • The scheme is operational from October 1, 2024, to March 31, 2026.

Objectives

  • Promote mass mobility through electrified public transport systems.
  • Encourage domestic manufacturing of EVs and components under the Phased Manufacturing Programme (PMP).
  • Support the creation of a comprehensive network of charging stations.
  • Reduce vehicular pollution and enhance urban air quality.
  • Facilitate the transition to a self-reliant (Aatmanirbhar) EV ecosystem.

Key Components of the Scheme

  • Demand Incentives
    • Financial support for purchasing e-2 wheelers, e-3 wheelers, e-ambulances, e-trucks, and electric buses.
    • Focus on promoting electric public transport and commercial fleets.
  • Grants for Capital Assets
    • Funding for electric buses, public charging infrastructure, and testing facilities under MHI.
    • States are encouraged to extend additional fiscal and non-fiscal incentives, such as road-tax waivers, permit exemptions, and reduced toll or parking fees.
  • Administrative Support: Includes costs for Information, Education & Communication (IEC) activities and Project Management Agency (PMA) fees to ensure smooth implementation.

Implementation Framework

The scheme will be monitored by the Project Implementation and Sanctioning Committee (PISC), chaired by the Secretary, Heavy Industries.

  • PISC will oversee progress, address challenges, revise incentives when necessary, and approve technical guidelines.
  • Only vehicles registered under the Central Motor Vehicle Rules (CMVR) and equipped with advanced battery technology are eligible for incentives.

Bharat Heavy Electricals Limited (BHEL) serves as the Nodal Agency for:

  • Demand aggregation for EV charging infrastructure.
  • Development of a Unified EV Super App to provide real-time charger availability, slot booking, payments, and deployment tracking — promoting digital accessibility for users.

Guidelines for EV Charging Infrastructure (2025)

The Ministry of Heavy Industries issued a tiered subsidy framework to promote the establishment of EV charging stations nationwide.

Subsidy Structure

  • 100% subsidy on upstream infrastructure and charging equipment for:Government offices, residential colonies, hospitals, and educational institutions (if open for public use).
  • 80% subsidy on upstream infrastructure and 70% on equipment for:High-traffic public locations such as railway stations, airports, metro stations, bus terminals, toll plazas, and municipal parking lots.
  • 80% subsidy on upstream infrastructure for:Shopping malls, markets, highways, expressways, and battery-swapping stations.

Deployment Priority

The scheme prioritizes:

  • Cities with over one million population,
  • State capitals, smart cities, metro-linked satellite towns, and
  • High-density transport corridors.

Eligible government agencies are to designate nodal bodies to identify sites, aggregate demand, and submit proposals via a dedicated online portal.

BHEL will act as the Project Implementation Agency (PIA), with subsidies released in two tranches linked to performance and compliance milestones.

PM E-DRIVE Scheme

  • 03 Oct 2024

In News:

The Union Cabinet approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme to promote electric mobility in the country.

Objective:

  • Accelerate electric vehicle (EV) adoption
  • Establish essential charging infrastructure
  • Promote cleaner and sustainable transportation

Key Highlights

  • Significant Occasion: Launched on the eve of Mahatma Gandhi's 155th Birth Anniversary, aligning with the vision of ‘Swachh Bharat’ and ‘Swachh Vahan’.
  • Financial Commitment: Union Cabinet approved a financial outlay of ?10,900 crore for the scheme over two years (approved on September 11, 2024).

Key Features of the PM E-DRIVE Scheme

  1. Subsidies/Demand Incentives:
    • Total of ?3,679 crore allocated for:
      • 24.79 lakh electric two-wheelers (e-2Ws)
      • 3.16 lakh electric three-wheelers (e-3Ws)
      • 14,028 electric buses (e-buses)
  2. E-Voucher Introduction:
    • Aadhaar-authenticated e-vouchers for EV customers
    • Simplifies access to incentives, with real-time generation for dealers.
  3. E-Ambulances:
    • ?500 crore allocated for deployment
    • Standards to be developed with relevant ministries.
  4. E-Buses:
    • ?4,391 crore for 14,028 e-buses in nine major cities
    • Focus on replacing scrapped state transport unit buses.
  5. E-Trucks:
    • ?500 crore for incentivizing electric trucks
    • Scrapping certificates required for incentives.
  6. Public Charging Stations:
    • ?2,000 crore to install:
      • 22,100 fast chargers for electric four-wheelers (e-4Ws)
      • 1,800 for e-buses
      • 48,400 for e-2Ws/3Ws
  7. Test Agency Modernization:
    • ?780 crore for upgrading Ministry of Heavy Industries test agencies to accommodate new EV technologies.