Lok Sabha Question No. 1171 (UNSTARRED), answered on 2025-02-11
Subject: PM E-Drive Scheme for Electric Vehicle Adoption
Ministry: HEAVY INDUSTRIES
Asked by: Shri Shashank Mani

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1171

ANSWERED ON 11.02.2025

## PM E-DRIVE SCHEME FOR ELECTRIC VEHICLE ADOPTION

## 1171.  SHRI SHASHANK MANI:

Will the Minister of HEAVY INDUSTRIES be pleased to state:

- (a) whether the Government has outlined the salient features, key components and objectives of the PM E-Drive Scheme, including specific targets for increasing Electric Vehicle (EV) adoption across the country and if so, the details thereof;
- (b)  whether  the  scheme  includes  incentives  for  consumers  and  manufacturers  to  boost  EV demand and if so, the details thereof including eligibility criteria and category-wise types of incentives offered;
- (c) whether there are infrastructure development plans such as establishing EV charging stations to support the PM E-Drive Scheme and if so, the details thereof including the funding allocated for these developments; and
- (d) whether the Government has established a monitoring mechanism to assess the scheme's progress  and  effectiveness  in  meeting  its  objectives  and  if  so,  the  details  thereof  including metrics or benchmarks used to evaluate its success?

## ANSWER

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

- (a): The  Government  of  India  has  notified  'PM  Electric  Drive  Revolution  in  Innovative Vehicle Enhancement (PM E-DRIVE) Scheme' on 29.09.2024 to provide impetus to the green mobility & development of EV eco-system in the country.  The scheme has an outlay of  ₹10,900 crore  over  a  period  of  two  years  from  01.04.2024  to  31.03.2026.    The  Electric  Mobility Promotion Scheme (EMPS) 2024 implemented for a period of six months from 01.04.2024 to 30.09.2024, is subsumed in PM E-DRIVE scheme.

## Salient features of PM E-DRIVE scheme:

- i. Introduction of E- Vouchers: - The Ministry of Heavy Industry (MHI) has introduced E-vouchers for Electric vehicle buyer to avail the demand incentive under the scheme.
- ii. Introduction of new vehicle segments: - An allocation ₹500 crore each has been done for deployment of e-ambulances and e-trucks under the scheme.
- iii. Upgradation of testing agencies: ₹780 Crore has been earmarked for upgradation of vehicles testing agencies, identified under the scheme.

## The scheme has following three components:

- i. Subsidies: ₹3,679 crore as demand incentives for approximately 28 lakh e-2W, e-3W, e-ambulances, e-trucks & other new emerging EV categories;
- ii. Grants: ₹7,171 crore for creation of capital assets i.e., e-buses, establishment of network of  charging  stations  &  upgradation  of  vehicle  testing  agencies  identified  under  this scheme; and
- iii. Administration of Scheme including IEC (Information, Education & Communication) activities and fee for Project Management Agency (PMA).

(b) & (c): The PM  E-DRIVE  scheme  includes incentives for consumers and not manufacturers.  It aims to boost demand for electric vehicles (EVs) through various incentives detailed below :

- i. Demand  Incentives: These  incentives  directly  reduce  the  upfront  cost  of  EVs  for consumers at the point of purchase.  The government reimburses the incentive amount to the Original Equipment Manufacturers (OEMs).
- ii. Financial Support for Charging Infrastructure: The scheme allocates ₹2,000 crore for establishing public charging infrastructure for various vehicle categories.
- iii. Grants for Capital Assets: The  scheme has provisions of ₹4,391 crore as  grants to support deployment of 14,028 e-buses by Public Transport Authorities and ₹780 crore as grants for the upgradation of vehicle testing agencies identified under the scheme.

Vehicles which are registered as 'Motor Vehicle' as per the Central Motor Vehicle Rules (CMVR) will only be eligible for incentives. Vehicles fitted with only advanced batteries and satisfying performance criteria as notified under the scheme are eligible under the Scheme.

(d): Yes, there is mechanisms in place to monitor and assess the implementation of the PM E-DRIVE  scheme.  Project  Implementation  and  Sanctioning  Committee  (PISC),  an  interministerial empowered committee, headed by the Secretary of Heavy Industries, is constituted for  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.

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