Lok Sabha Question No. 1259 (UNSTARRED), answered on 2025-02-11
Subject: Enhancement of e-Vehicles
Ministry: HEAVY INDUSTRIES
Asked by: Shri Haribhai Patel

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1259

ANSWERED ON 11.02.2025

## ENHANCEMENT OF E-VEHICLES

## 1259.  SHRI HARIBHAI PATEL:

Will the Minister of HEAVY INDUSTRIES be pleased to state:

- (a) the manner in which the 10,900 crore PM e-Drive scheme will enhance electric mobility in India and contribute to the country's environmental goals;
- (b)  the  key  benefits  expected  from  the  implementation  of  the  PM  e-Drive  scheme  for  both consumers and manufacturers;
- (c) the steps being taken under the scheme to support and incentivize the adoption of Electric Vehicles (EVs) across different regions of India;
- (d) the measures the Government plans to implement to ensure the successful deployment and monitoring of the e-Drive scheme to maximize its impact; and
- (e) the manner in which the PM e-Drive scheme will facilitate the growth of the electric vehicle industry and create job opportunities in the sector?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

- (a): 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:
- i. Faster  Adoption  of  EVs: The  scheme  seeks  to  accelerate  the  uptake  of  electric vehicles by reducing their upfront costs through demand incentives.
- ii. 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.
- iii. EV Manufacturing Ecosystem: The scheme promotes the development of a local EV manufacturing ecosystem, ensuring long-term sustainability and reducing reliance on imports.
- iv. 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.
- v. 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.

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

- i. For Consumers: Demand incentives lower the initial cost of EVs, making them more accessible for EV buyers.
- ii. 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.

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

- i. 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.
- ii. E-Buses : The scheme allocates ₹4,391 crore for the rollout of 14,028 e-buses.
- iii. Prioritising Scrapping : For grants to deploy e-buses, cities/states that procure new ebuses after scrapping old STU buses through authorised RVSFs are to be preferred.

(d): 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 interministerial 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.

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

- i. Domestic  Manufacturing :  The  Phased  Manufacturing  Programme  (PMP) mandates progressive localisation of EV  components,  boosting domestic manufacturing and reducing import dependence.
- ii. Charging Infrastructure Development :  Investment in charging infrastructure creates opportunities for businesses and entrepreneurs in installation, maintenance, and operation.
- iii. 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.

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