Syllabus: 

GS2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. 

Context: 

The Ministry of Heavy Industries has extended the Pradhan Mantri Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme for the next 2 years. Due to this, the new deadline has become March 31, 2028.

PM E-Drive Scheme 

• The PM E-DRIVE initiative promotes mass mobility through the support of public transportation systems. It was officially launched on September 29, 2024. 
• The Scheme is launched by the Ministry of Heavy Industries (MHI). 
• The key objective is to speed up the transition to electric vehicles by offering upfront incentives for EV purchases and encouraging the development of charging infrastructure. 
• The PM E-DRIVE Scheme aims to accelerate EV adoption and establish essential charging infrastructure across the country, promoting cleaner and more sustainable transportation.
• The scheme seeks to reduce transportation-related environmental impacts and improve air quality while also promoting an efficient and competitive EV manufacturing sector in line with the Aatmanirbhar Bharat initiative. 
• This is to be accomplished through a phased manufacturing program (PMP) designed to boost domestic manufacturing and strengthen the EV supply chain.

Key Components

• Subsidies: Demand Incentives for e-2W, e-3W, e-ambulances, e-trucks and other new emerging EV categories
• Grants for creation of capital assets: e-buses, establishment of a network of charging stations & upgradation of testing agencies of MHI, and
• Administration of the Scheme, including IEC (Information, Education & Communication) activities and fees for the project management agency (PMA).

Eligibility 

Electric Two-Wheelers (e-2Ws): 

• Incentives for ~24.79 lakh e-2Ws with advanced batteries.
• Applies to both commercial and private e-2Ws.

Electric Three-Wheelers (e-3Ws): 

• Incentives for ~3.2 lakh e-3Ws, including e-rickshaws, e-carts, and L5 vehicles.
• Only advanced battery e-3Ws used for commercial purposes are eligible.

e-Ambulances: 

• Rs. 500 crore allocated to promote e-ambulances for safe and comfortable patient transport.
• Performance and safety standards to be set in collaboration with MoHFW, MoRTH, and others.
• Eligibility criteria under discussion with MoHFW and will be announced soon.

e-Trucks: 

• Rs. 500 crore set aside to incentivize electric trucks for greener logistics.
• Only trucks with a scrapping certificate from MoRTH-approved centers are eligible.
• Details on subsidy, vehicle count, and performance norms to be notified later.

e-Buses: 

• Rs. 4,391 crore allocated to procure 14,028 e-buses for public transport in 9 major cities.
• Priority given to cities scrapping old buses as per MoRTH guidelines.
• Special guidelines for hilly, NE states, islands, and coastal areas may be adopted for better access.

Sources::

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2154408 https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=153264&ModuleId=3®=3&lang=1 https://www.dynamitenews.com/national/subsidy-will-be-available-on-electric-vehicles-till-2028-govt-extended-deadline-by-2-years#goog_rewarded