Govt Rolls Out PM E-Drive Scheme - Replaces FAME, Skips On Electric, Hybrid Cars

Prime Minister Narendra Modi today gave a green signal to the MHI's scheme for promoting EVs in the country. Here's all about it.

Govt Rolls Out PM E-Drive Scheme - Replaces FAME, Skips On Electric, Hybrid Cars

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, has approved the proposal of Ministry of Heavy Industries (MHI) for the implementation of a scheme titled ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme' for the promotion of electric mobility in the country. The scheme has an outlay of Rs 10,900 crore for over a period of two years. it replaces the FAME-II scheme. Sadly, there are no incentives for hybrid or electric cars.

Key Components Of PM E-Drive Scheme:

Subsidies: Subsidies/Demand incentives worth Rs.3,679 crore have been provided to incentivize e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs. The scheme will support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.

E-Vouchers For Demand Incentives: MHI is introducing e-vouchers for EV buyers to avail demand incentives under the scheme. At the time of purchase of the EV, the scheme portal will generate an Aadhaar authenticated e-Voucher for the buyer. A link to download the e-voucher shall be sent to the registered mobile number of the buyer. This e-voucher will be signed by the buyer and submitted to the dealer to avail demand incentives under the scheme. Thereafter, the e-Voucher will also be signed by the dealer and uploaded on the PM E-DRIVE portal. The signed e-voucher shall be sent to the buyer and dealer through an SMS. The signed e-voucher will be essential for OEM to claim reimbursement of demand incentives under the scheme.

Also Read - Nitin Gadkari Optimistic About India Taking Top Spot For Hydrogen As Fuel

e-Ambulances: The scheme allocates Rs.500 crore for the deployment of e-ambulances. This is a new initiative of Govt of India to promote the use of e-ambulance for a comfortable patient transport. The performance and safety standards of e-ambulances will be formulated in consultation with MoHFW, MoRTH and other relevant stakeholders.

Electric Buses: A sum of Rs.4,391 crore has been provided for the procurement of 14,028 e-buses by STUs/public transport agencies. The demand aggregation will be done by CESL in the nine cities with more than 40 lakh population namely Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune and Hyderabad. Intercity and Interstate e-buses will also be supported in consultation with states.  While allocating buses to cities/states, first preference shall be given to those number of buses of cities/states, which are being procured after scrapping old STU buses, through authorised scrapping centres (RVSFs) following the MoRTH Vehicle Scrapping Scheme guidelines.

Electric Trucks & Scrapping Centres: The trucks are a major contributor to air pollution. The scheme will promote the deployment of e-trucks in the country. Rs.500 crore has been allocated for incentivising e-trucks. Incentives will be given to those who have a scrapping certificate from MoRTH-approved vehicle scrapping centres (RVSF).

Installation Of Over 72,000 Fast Chargers: The scheme addresses the range anxiety of EV buyers by promoting in a big way the installation of electric vehicle public charging stations (EVPCS). These EVPCS shall be installed in the selected cities with high EV penetration and also on selected highways. The scheme proposes the installation of 22,100 fast chargers for e-4 Ws, 1800 fast chargers for e-buses and 48,400 fast chargers for e-2W/3Ws. The outlay for EV PCS will be Rs.2,000 crore.

Upgradation Of Testing Agencies: Given the growing EV ecosystem in the country, the test agencies of MHI will be modernized to deal with the new and emerging technologies to promote green mobility. The upgradation of testing agencies with an outlay of Rs.780 crore under the aegis of MHI has been approved.

.