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Govt. extends PM E-DRIVE plan by 2 years till Mar. 2028

09 Aug 2025 GS 2 Govt schemes & initiatives
Govt. extends PM E-DRIVE plan by 2 years till Mar. 2028 Click to view full image

Full Form: Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme

Key Update:

  • Extended validity: Now till March 2028 (earlier March 2026)

  • Budget: ₹10,900 crore

  • Applicability: Certain categories of electric vehicles (EVs) including:

    • Electric buses

    • E-ambulances

    • E-trucks

  • Exception: Terminal date for registered E-2 (likely e-2 wheelers) remains March 31, 2026.


PM E-DRIVE Scheme (PM Electric Drive Revolution in Innovative Vehicle Enhancement)

Launched: 1 October 2024
Extended till: 31 March 2028 (except e-2Ws – till 31 March 2026)
Financial Outlay: ₹10,900 crore
Implementing Ministry: Ministry of Heavy Industries (MHI)

Objectives

  • Accelerate adoption of electric vehicles (EVs) in India.

  • Establish charging infrastructure across cities and highways.

  • Boost domestic EV manufacturing through Phased Manufacturing Program (PMP).

  • Promote green, sustainable transportation under Aatmanirbhar Bharat.

Key Components

  1. Subsidies (Demand Incentives)

    • For e-2Ws, e-3Ws, e-buses, e-ambulances, e-trucks.

    • Incentive per kWh:

      • FY 2024-25: ₹5,000/kWh

      • FY 2025-26: ₹2,500/kWh

    • Capped at 15% of ex-factory price or max per-vehicle limit.

    • Only EVs with advanced batteries qualify.

    • Govt. department EV purchases not eligible.

  2. Grants for Capital Assets

    • Procurement of e-buses by State Transport Undertakings (STUs).

    • Setting up public charging stations.

    • Upgrading MHI testing facilities.

  3. Administration & IEC

    • Public awareness campaigns, scheme management fees, monitoring.

Eligibility by Vehicle Category

All EVs must be registered under the Central Motor Vehicles Rules (CMVR), 1989, to qualify for these incentives.
EVs purchased by government departments are not qualified for demand incentives, preventing the transfer of funds within government bodies.
CategoryTargets / BudgetKey Criteria
e-2W24.79 lakh unitsAdvanced batteries, private/commercial use, price cap, Privately or corporately owned e-2Ws are also eligible
e-3W3.2 lakh unitsCommercial only, advanced battery, price cap
e-Ambulance₹500 crore budgetStandards with MoHFW, MoRTH; criteria to be announced
e-Truck₹500 crore budgetOnly those having Scrapping certificate from MoRTH RVSF, monitored compliance
e-Bus₹4,391 crore for 14,028 unitsCities >40 lakh pop., preference for old bus scrappage

Charging Infrastructure Goals

  • 22,100 fast chargers for e-4Ws.

  • 1,800 chargers for e-buses.

  • 48,400 chargers for e-2Ws & e-3Ws.

  • Outlay: ₹2,000 crore.

  • 100% cost funding possible for charging infra (including upstream power infra).



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