Government launched PM E-Drive subsidy scheme, 24.79 lakh EVs will get subsidy

On Tuesday, the government launched the PM E-Drive scheme at an outlay of Rs 10,900 crore aimed at fast-tracking the adoption of electric vehicles in India, establishment of charging infrastructure, and development of the EV manufacturing ecosystem. The scheme will be implemented between October 1, 2024 and March 31, 2026. It will also include EMPS-2024 (Electric Mobility Promotion Scheme) to be implemented from April 1, 2024 to September 30, 2024 under the PM e-Drive scheme itself.

The subsidy on electric two-wheelers was fixed at Rs 5,000 per kWh under the PM e-Drive scheme as per the battery power. The incentive under FAME will be halved to Rs 2,500 per KWH and the maximum benefit would not exceed Rs 5,000 in the second year of the scheme. Currently, companies like Ola, TVS, Ather Energy, Hero Vida of Hero MotoCorp and Chetak Bajaj have battery capacity in the range of 2.88 to four kWh. Their vehicle price is within the range of Rs 90,000 to Rs 1.5 lakh.

To make the whole process seamless, a mobile app will be introduced through which e-vouchers can be generated for availing subsidy under the scheme, said Hanif Qureshi, additional secretary in the heavy industries ministry. One Vehicle will be allowed for one Aadhaar. As soon as the vehicle is sold, the e-voucher will be generated, he said. Rs 780 crore has been allocated for the enhancement of the testing facility mechanism under the scheme. Three-wheelers including e-rickshaws will get an incentive of Rs 25,000 in the first year and this incentive shall be reduced to Rs 12,500 in the second year.