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

18 Dec 2025 GS 2 Govt schemes & initiatives
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Click to view full image

Context

Kerala is planning to develop a model electric truck (e-truck) freight corridor along National Highway-66, aimed at accelerating freight electrification under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.

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

What is PM E-DRIVE?

PM E-DRIVE is a flagship Centrally Sponsored Scheme of the Ministry of Heavy Industries (MHI) aimed at accelerating electric mobility, strengthening EV charging infrastructure, and building a domestic EV manufacturing ecosystem in line with Aatmanirbhar Bharat and Net-Zero 2070 goals.

Timeline and duration

  • Approved by Cabinet: September 2024

  • Original duration:

    • October 2024 – March 2026 (2 years)

  • Extended duration :

    • Up to 31 March 2028 (4 years total)

  • Important distinction:

    • e-2W, e-3W (L5), e-rickshaws & e-carts
      → Terminal date remains 31 March 2026

    • e-trucks, e-buses, e-ambulances, testing agencies
      → Extended till 31 March 2028

Financial outlay

  • Total outlay: ₹10,900 crore

  • Fund-limited scheme

    • No enhancement in budget despite extension

    • Once funds are exhausted → scheme or sub-components will be closed

  • Disbursement model:

    • First-come, first-served

    • Milestone-linked grants (especially for e-buses)

Objectives

  • Accelerate EV adoption across vehicle categories

  • Develop robust public charging infrastructure

  • Promote Make in India through Phased Manufacturing Programme

  • Reduce:

    • Vehicular emissions

    • Oil import dependence

  • Support India’s Net-Zero emissions by 2070

Evolution and background

PM E-DRIVE builds upon earlier EV initiatives:

  • FAME-I (2015)

  • FAME-II (2019)

  • Electric Mobility Promotion Scheme (EMPS)

Unlike FAME-II (largely passenger-centric), PM E-DRIVE places strong emphasis on commercial and freight electrification.

Key components of PM E-DRIVE

1. Target beneficiaries

Eligible vehicle categories include:

  • Electric two-wheelers (e-2W)

  • Electric three-wheelers (e-3W, L5)

  • E-rickshaws and e-carts

  • E-ambulances

  • E-trucks (mandatory scrapping certificate)

  • Electric buses for public transport

2. Demand incentives

  • Incentive capped at:

    • 15% of ex-factory price, or

    • Fixed per-vehicle limit (whichever is lower)

  • Price ceiling for vehicle eligibility

  • Incentives applicable only during scheme validity

3. Charging infrastructure development

  • Target: 72,300 public fast charging stations

  • Focus areas:

    • Major cities

    • Select national highways and freight corridors

  • Bharat Heavy Electricals Limited (BHEL):

    • Developing a national EV Super App

    • Functions:

      • Slot booking

      • Payments

      • Charger availability tracking

4. Testing agencies upgradation

  • ₹780 crore allocation

  • Objective:

    • Upgrade testing agencies under MHI

    • Introduce advanced testing technologies

    • Ensure safety, quality, and performance standards

  • Extension justified due to:

    • Long procurement and commissioning cycles

Eligibility conditions

  • Only EVs with advanced batteries eligible

  • Government-procured EVs excluded

    • Prevents internal fund transfers

  • Vehicles must be:

    • Registered under Central Motor Vehicles Rules (CMVR), 1989

    • Manufactured and registered within scheme validity

  • E-trucks require scrapping certificate

Why extension till 2028 was necessary

1. E-trucks

  • Market still nascent

  • Full-scale commercial production needs time

2. E-buses

  • ₹4,391 crore allocated for 14,028 electric buses

  • Post-selection process starts March 2026

  • Grants disbursed over 18 months, milestone-linked

3. Testing agencies

  • Time-intensive procurement and commissioning processes

Impact so far

  • Under EMPS + PM E-DRIVE:

    • e-2W sales ~5.7 lakh units in 2024-25

  • Freight and public transport electrification identified as high-impact segments

Prelims Practice MCQs

Q. With reference to the PM E-DRIVE Scheme, consider the following statements:

  1. It is a Centrally Sponsored Scheme implemented by the Ministry of Heavy Industries.

  2. Its total financial outlay was increased when the scheme was extended till 2028.

  3. Electric trucks require scrapping certificates to be eligible for incentives.

Which of the statements given above are correct?
(a) 1 and 3 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (a)

Explanation:
The outlay remains ₹10,900 crore; only the duration was extended.



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