PM E-DRIVE Scheme

• The PM E-DRIVE Scheme is an initiative by the Government of India aimed at accelerating the adoption of electric vehicles (EVs) across the country, with a focus on reducing carbon emissions, promoting clean energy, and creating a sustainable future for the transport sector.

Objective:

• The main objective of the PM E-DRIVE Scheme is to expedite the adoption of electric vehicles by providing upfront incentives for consumers and facilitating the establishment of essential charging infrastructure to support EVs. The scheme is designed to boost India's transition towards a greener and cleaner transportation sector.

Time Period:

• The scheme is set to run from 2024 to 2026.

Nodal Ministry:

• The Ministry of Heavy Industries is the nodal ministry responsible for the implementation and monitoring of the scheme.

Key Features of the PM E-DRIVE Scheme

Subsidies:

• The scheme will provide demand incentives for consumers, which will reduce the purchase cost of electric vehicles, making them more affordable for the general public.

Grants for Creation of Capital Assets:

• e-buses: Financial support will be provided for the purchase and operation of electric buses.
• EV Charging Stations (EVPCS): The scheme will fund the establishment of a nationwide network of EV public charging stations.
• Upgradation of Testing Agencies: Grants will be allocated for the upgradation of existing testing facilities for electric vehicles, ensuring compliance with standards and safety protocols.

Project Management Agency (PMA):

• The scheme will be implemented through a Project Management Agency (PMA), which will be responsible for managing the secretarial, managerial, and implementation aspects of the scheme.

Phased Manufacturing Programme (PMP):

• The scheme will encourage Original Equipment Manufacturers (OEMs) to follow the Phased Manufacturing Programme (PMP) for the production of electric vehicles and the establishment of EV charging infrastructure. 
• PMP ensures that the manufacturing of key components and vehicles is done in a phased manner to boost domestic manufacturing capabilities.

Other Key Initiatives under the Scheme

GST Rationalization:

• The Goods and Services Tax (GST) on electric vehicles has been reduced from 12% to 5%, which will make EVs more affordable and stimulate demand.

Technology Platform for Electric Mobility (TPEM):

• The Technology Platform for Electric Mobility (TPEM) has been set up by the Ministry of Science and Technology. It will focus on the research and development of electric mobility solutions, fostering technological innovation in the EV sector.

PM-eBus Sewa-Payment Security Mechanism (PSM):

• A Payment Security Mechanism (PSM) has been created under the PM-eBus Sewa initiative, designed to help Public Transport Authorities (PTAs) procure and operate electric buses in an efficient and secure manner.

Eligible Categories for Demand Incentives

Electric Two-Wheelers (e-2W):

• Electric two-wheelers are eligible for demand incentives under the scheme. This category is expected to contribute significantly to reducing pollution in urban areas.

Electric Three-Wheelers:

• This category includes electric three-wheelers, including registered e-rickshaws and other similar vehicles, which are essential for last-mile connectivity.

Electric Ambulances:

• Electric, plug-in hybrid, and strong hybrid ambulances are eligible for demand incentives to facilitate the transition to green emergency vehicles.

Electric Trucks and Other Emerging EV Categories:

• Electric trucks, as well as new emerging categories of electric vehicles, will also be eligible for incentives under the scheme, promoting the shift towards sustainable freight and logistics.

Eligibility Criteria

• To qualify for demand incentives under the PM E-DRIVE Scheme, the following conditions must be met:
• Vehicles must be registered as "Motor Vehicles" under the Central Motor Vehicle Rules (CMVR), 1989.
• Vehicles must be equipped with advanced battery technology.
• The vehicles must meet any other criteria prescribed under the scheme, ensuring that they are in compliance with safety, quality, and performance standards.