Pm edrive scheme has been implemented from today. It will end on March 31 2026. The notification states that starting in April 2025, subsidies for electric two- and three-wheelers would be cut in half.The Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) II initiative. It was worth Rs 11,500 crore but ran out of money in March. It was replaced by the PM E-Drive scheme.Under the PM E-Drive is the interim Rs 778-crore Electric Mobility Promotion Scheme (EMPS). It is in effect till September 30. Compared to the five-year FAME II project, the new scheme is more extensive.It has a larger budget, and places more of an emphasis on charging infrastructure and public transportationThe program suggests that the government intends to progressively stop providing subsidies to consumers who purchase electric vehicles.
What is pm edrive
The new initiative gives discounts worth Rs 3,679 crore to incentivize adoption of battery-driven two and three-wheelers, ambulances, lorries and other upcoming EVs.The primary elements of the program consist of demand incentives or subsidies of Rs. 3,679 crore, which are intended to encourage the use of e-trucks, e-ambulances, e-3Ws, and other new electric vehicles. 14,028 e-buses, 3.16 lakh e-3Ws, and 24.79 lakh e-2Ws will all be supported under the program.The plan also allots Rs. 500 crore for the e-ambulance fleet. This is a new government program to promote the usage of e-ambulance for a comfortable patient transport.
Objective of pm edrive scheme
While the government has set aside Rs 7,171 crore to promote the adoption of electric buses, upgrade public charging infrastructure, and upgrade testing infrastructure, it also intends to provide demand incentives worth Rs 3,679 crore for the purchase of electric two-wheelers, three-wheelers, ambulances, and trucks.
Electric two wheeler under pm edrive scheme
Electric two-wheelers are currently eligible for a subsidy under the EMPS of up to Rs 10,000 per vehicle, or Rs 5,000 per kWh. Under the revised policy, the subsidy will stay at the same level for the current fiscal year but taper down to Rs 2,500 per kWh with a limit of Rs 5,000 per car starting in April 2025.
Electric three wheeler under pm edrive scheme
Similar to this, under the current EMPS scheme, e-rickshaws and passenger and cargo electric autos will continue to receive subsidies of Rs 5,000 per kWh with a cap of Rs 25,000 per vehicle and Rs 5,000 per kWh with a cap of Rs 50,000 per vehicle, respectively. However, starting in April, these subsidies will be halved.
E-bus under pm edrive scheme
As the government attempts to decarbonize the public transportation sector, electric buses receive the largest allocation under the PM E-Drive plan, totaling Rs 4,391 crore. The plan will provide incentives for state transportation units and other public transportation organizations to purchase 14,028 electric buses. Until the end of the programme, electric buses with a maximum ex-factory price of Rs 2 crore will receive a subsidy of Rs 10,000 per kWh.Electric buses measuring between 10 and 12 meters are eligible for a maximum subsidy of Rs 35 lakh; buses measuring between 8 and 10 meters and between 6 and 8 meters are limited to Rs 25 lakh and Rs 20 lakh, respectively.
