Context:
The Central Government has extended the PM E-Drive subsidy scheme by two years, now running until the fiscal year 2027-28. This comes as nearly half of the allocated ₹10,900 crore budget remains unutilized. Subsidies for electric two- and three-wheelers under the scheme will end by March 31, 2026.
About PM E-Drive Subsidy Scheme
- Launch & Administration:
- Launched on 1 October 2024, replacing the Electric Mobility Promotion Scheme (EMPS-2024).
- Administered by the Ministry of Heavy Industries.
- Duration:
- Extended till March 31, 2028, or until the funds are fully utilized.
- Budget Allocation:
- Total outlay: ₹10,900 crore.
- Demand incentives for EVs: ₹3,679 crore.
- E-buses, charging infrastructure, and testing facilities: ₹7,171 crore.
Objectives
- Accelerate penetration of electric vehicles in public transport and logistics sectors.
- Reduce upfront cost of EVs for consumers to boost adoption.
- Strengthen charging infrastructure to mitigate range anxiety.
- Support domestic EV manufacturing under the Atmanirbhar Bharat initiative.
Coverage
- Electric two-wheelers, three-wheelers, trucks, ambulances, and buses.
- Charging infrastructure across urban areas and highways.
