PM E-Drive: Government To Reduce Turnaround Time For EV Subsidy Claims

In a bid to boost EV adoption, the Ministry of Heavy Industries (MHI) is aiming to reduce the processing time for EV subsidy claims. Presently, the time taken to process EV subsidies is 40 days, but the MHI plans to reduce technical bottlenecks and steps for verification, in order to make the process smoother and less time-consuming. Reports suggest that there is a massive backlog for subsidy claims, with around 126,000 claims pending in 2024-25 and 893,000 claims overall. Claims for electric two-wheelers are about 109,000. 

This move comes under the Central Government's PM Electric Drive Revolution In Innovative Vehicle Enhancement (PM E-DRIVE) scheme by HMI to increase EV adoption across the country. The PM E-DRIVE scheme will run from October 1, 2024 to March 31, 2026. Currently, it has an outlay of Rs. 10,900 crore, with Rs. 4,391 crore earmarked for electric buses and Rs. 1,772 crore for electric two-wheeler subsidies. The scheme also has Rs. 2,000 crore earmarked to improve and boost EV charging infrastructure in the country. Another Rs. 902 crore have been kept for subsiding electric three-wheelers and Rs. 780 crore will be used to upgrade EV testing facilities in the country. 

India saw sales of 20 lakh EVs in FY2024-25, with cumulative sales of over 61 lakh units. Unsurprisingly, EV two-wheelers constitute over 50 per cent sales, with electric three-wheelers having 36 per cent share. Electric cars also saw an 11 per cent year-on-year rise in FY2024-25. The states of Bihar, Uttar Pradesh, Maharashtra, Tamil Nadu and Karnataka account for over 50 per cent of EV sales in India.