TNFNew Delhi/ TNF
In a significant move to boost electric mobility, the Union Cabinet has approved the PM e-Drive Scheme with an allocation of ₹10,900 crore. This scheme aims to promote the use of electric vehicles, including two-wheelers, ambulances, trucks, and three-wheelers, over the next two years.
Information and Broadcasting Minister Ashwini Vaishnaw highlighted that this investment is distinct from the Production Linked Incentive (PLI) scheme for the auto and auto components sector. Under the PM e-Drive Scheme, there will be full support for charging infrastructure at 88,500 sites.
Major Components of the Scheme
According to a release from the Press Information Bureau (PIB), the scheme includes subsidies and demand incentives amounting to ₹3,679 crore. This funding will support:
- 24.79 lakh e-two-wheelers (e-2W)
- 3.16 lakh e-three-wheelers (e-3W)
- 14,028 electric buses
The initiative also aims to encourage the adoption of other emerging electric vehicles (EVs).
Follow-Up to FAME-II Scheme
The PM e-Drive Scheme is a follow-up to the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme, which provided subsidies for 13,21,800 EVs over a five-year period ending on March 31, 2024. The FAME-II scheme had a total outlay of ₹11,500 crore.
Following the completion of the FAME-II scheme, it was succeeded by the Electric Mobility Promotion Scheme (EMPS) 2024, which was initially valid for four months but has been extended until September 30, 2024, with an additional ₹500 crore allocated for promotion.
This new scheme is expected to play a crucial role in advancing the electric vehicle sector, promoting green technology, and supporting the infrastructure necessary for widespread adoption.
