Important Facts For Prelims
PM E-DRIVE Scheme
- 24 May 2025
- 3 min read
Why in News?
In a major step toward sustainable clean urban mobility, the Ministry of Heavy Industries (MHI) will deploy electric buses under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, with a focus on major cities like Bengaluru, Hyderabad, Delhi, and Ahmedabad.
What is the PM E-DRIVE Scheme?
- About: The PM E-DRIVE is a flagship scheme approved by Cabinet with Rs. 10,900 crore outlay; effective from October 2024, to March 2026.
- 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.
- 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.
- 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 PM E-DRIVE Scheme offers demand incentives on EVs capped at 15% of the ex-factory price or a fixed per-vehicle limit, whichever is lower.
- Only EVs priced below a specified threshold are eligible.
- 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).
- Surge in Sale of e-vehicles: The MHI is driving electric vehicle adoption to support India's net-zero 2070 goal. Under schemes like Electric Mobility Promotion Scheme (EMPS) and PM E-DRIVE, e-2W sales surged to around 5.7 lakh units in 2024-25.
UPSC Civil Services Examination, Previous Year Questions (PYQs)
Mains:
Q. How is efficient and affordable urban mass transport key to the rapid economic development in India? (2019)
