The ₹10,900 crore PM E-Drive scheme aims to enhance electric mobility in India and contribute to the country's environmental goals through several key strategies.  The scheme is available till 31.03.2026.  The scheme aims to achieve its objective in the following manner:

1. Faster Adoption of EVs: The scheme seeks to accelerate the uptake of electric vehicles by reducing their upfront costs through demand incentives.
2. Charging Infrastructure: A significant focus is on establishing a robust charging infrastructure network to build confidence among EV users and support the growing EV fleet.
3. EV Manufacturing Ecosystem: The scheme promotes the development of a local EV manufacturing ecosystem, ensuring long-term sustainability and reducing reliance on imports.
4. Emphasis on Public Transport: Prioritising EVs for public transport and commercial use aims to provide environmentally friendly transportation options for the masses, thereby reducing overall emissions.
5. Reduced Reliance on Fossil Fuels: By promoting electric mobility, the scheme intends to decrease dependence on fossil fuels and lower emissions from the transportation sector.

The key benefits expected from the implementation of the PM E-Drive scheme for both consumers and manufacturers are as follows:

1. For Consumers: Demand incentives lower the initial cost of EVs, making them more accessible for EV buyers.
2. For Manufacturers: Demand incentives directly stimulate the demand for EVs, boosting sales and production volumes. The Phased Manufacturing Programme (PMP) supports the localisation of EV components, fostering domestic manufacturing capabilities.

The steps taken under the scheme to support and incentivize the adoption of Electric Vehicles (EVs) across different regions of India are as follows:

1. Financial Support: Demand incentives of ₹5,000 per kWh in FY 2024-25 and ₹2,500 per kWh in FY 2025-26 are provided for e-2W and e-3W categories.  These incentives are capped at 15% of the ex-factory price.
2. E-Buses: The scheme allocates ₹4,391 crore for the rollout of 14,028 e-buses.
3. Prioritising Scrapping: For grants to deploy e-buses, cities/states that procure new e-buses after scrapping old STU buses through authorised RVSFs are to be preferred.

To ensure the successful deployment and monitoring of the PM E-DRIVE scheme and to maximize its impact, Project Implementation and Sanctioning Committee (PISC), an inter-ministerial empowered committee, headed by the Secretary of Heavy Industries, is constituted. PISC does overall monitoring, sanctioning, and implementation of the PM E-DRIVE scheme. This committee is also responsible for removing any obstacles or difficulties that may arise during implementation.

The scheme will facilitate the growth of the electric vehicle industry and create job Opportunities in the sector in the following manner:

1. Domestic Manufacturing: The Phased Manufacturing Programme (PMP) mandates progressive localisation of EV components, boosting domestic manufacturing and reducing import dependence.
2. Charging Infrastructure Development: Investment in charging infrastructure creates opportunities for businesses and entrepreneurs in installation, maintenance, and operation.
3. Incentives for local manufacturing: The minimum of 50% percentage of domestic value addition (DVA) in manufacturing of EV Charger is a boost for local component manufacturer.

This information was given by the Minister of State for Steel and Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Lok Sabha today.

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