Rapid Fire
Government Revises PM e-DRIVE Scheme
- 30 Mar 2026
- 3 min read
Recently, the government has revised the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-DRIVE) scheme, introducing new timelines and caps for EV incentives.
PM E-DRIVE Scheme
- About: The PM E-DRIVE is a flagship scheme with a ₹10,900 crore outlay (October 2024–March 2026), with revised incentive deadlines extending to 31st July 2026 for electric two-wheelers and 31st March 2028 for electric three-wheelers.
- PM E-DRIVE Scheme builds on earlier programs like Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME-I) (2015), FAME-II (2019) to accelerate adoption of electric two- and three-wheelers.
- Objective: The primary objective of this initiative is to accelerate the adoption of electric vehicles (EVs) across various categories, build robust EV charging infrastructure, and develop a strong domestic EV manufacturing ecosystem aligned with the vision of Aatmanirbhar Bharat.
- Key Components:
- Target beneficiaries: Commercial and private electric two-wheelers and three-wheelers with advanced batteries, e-ambulances, e-trucks with scrapping certificates, and electric buses for public transport.
- Demand incentives: The scheme offers demand incentives capped at 15% of the ex-factory price (or a fixed limit), with eligibility restricted to vehicles priced below ₹1.5 lakh (e-2W) and ₹2.5 lakh (e-3W).
- The L5 category of electric three-wheelers has already been closed after achieving its target in December 2025.
- The scheme caps support at 24,79,120 electric two-wheelers and 39,034 electric three-wheelers.
- Charging Infrastructure Development: The scheme aims to set up 72,300 public fast chargers in key cities and select highways to boost EV adoption.
- Bharat Heavy Electricals Ltd (BHEL), a public sector unit under the MHI, will develop a digital “Super App” for EV users to book slots, make payments, and check charger availability.
- Testing Agencies Upgradation: The scheme allocates Rs 780 crore to upgrade testing agencies under MHI with advanced technologies to support green mobility.
- Eligibility: Only EVs with advanced batteries qualify for incentives. Government-purchased EVs are excluded to prevent internal fund transfers.
- Vehicles must be registered under Central Motor Vehicles Rules (CMVR), 1989.
- e-2Ws and e-3Ws must be manufactured and registered within scheme validity (Oct 2024 – Mar 2026).
| Read More: PM E-DRIVE Scheme |
