The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the implementation of the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ proposed by the Ministry of Heavy Industries (MHI) to promote electric mobility across India.

The scheme, with an outlay of Rs 10,900 crore, aims to enhance the adoption of electric vehicles (EVs) over the next two years.

The PM E-DRIVE Scheme includes demand incentives worth Rs 3,679 crore to support 24.79 lakh electric two-wheelers (e-2Ws), 3.16 lakh electric three-wheelers (e-3Ws), and 14,028 electric buses (e-buses).

“Subsidies will also be provided for e-ambulances, e-trucks, and other emerging EVs. To facilitate EV purchases, MHI will introduce e-vouchers, which will be Aadhaar-authenticated and used by buyers to avail incentives at the point of purchase,” the government said in a statement.

A significant allocation of Rs 500 crore is designated for the deployment of e-ambulances, an initiative aimed at promoting the use of electric vehicles in the medical sector. E-ambulances will be developed with specific safety and performance standards in consultation with the Ministry of Health and Family Welfare (MoHFW), the Ministry of Road Transport and Highways (MoRTH), and other stakeholders.

The scheme also allocates Rs 4,391 crore for the procurement of 14,028 e-buses by State Transport Undertakings (STUs) and public transport agencies. Demand aggregation for these buses will be managed by Convergence Energy Services (CESL) in nine cities with populations exceeding 40 lakh, including Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bengaluru, Pune, and Hyderabad.

The plan also supports intercity and interstate e-buses, with priority given to buses procured after scrapping old vehicles per MoRTH Vehicle Scrapping Scheme guidelines.

Recognising the role of trucks as major contributors to air pollution, the scheme allocates Rs 500 crore for the promotion of e-trucks. Incentives will be provided to truck owners with scrapping certificates from MoRTH-approved vehicle scrapping centers.

To address range anxiety among EV users, the PM E-DRIVE Scheme includes provisions for installing 72,300 fast chargers across selected cities and highways. This network will comprise 22,100 fast chargers for e-four-wheelers, 1,800 for e-buses, and 48,400 for e-two-wheelers and e-three-wheelers, with an outlay of Rs 2,000 crore dedicated to public charging infrastructure.

The scheme will also modernize MHI’s testing agencies with an allocation of Rs 780 crore to keep pace with emerging technologies and promote green mobility. It aims to expedite the adoption of EVs by providing upfront purchase incentives and facilitating the establishment of essential charging infrastructure.

In line with the ‘Aatmanirbhar Bharat’ vision, the scheme promotes a resilient and competitive EV manufacturing industry through a phased manufacturing program (PMP), encouraging domestic production and strengthening the supply chain. This initiative is expected to attract substantial investments in the EV sector and create significant employment opportunities.

The PM E-DRIVE Scheme is positioned to address environmental pollution and fuel security concerns while fostering sustainable transportation solutions. It is anticipated to generate employment through the manufacturing and establishment of charging infrastructure and drive forward India’s transition to a cleaner, greener future.