Key Highlights
- Indian government announced new PM E-Drive scheme for EVs
- New scheme will replace FAME II subsidies
- Rs. 10,900 crore total budget allocated
- E2WS to get a major boost from the PM-E Drive scheme
The rapidly growing EV market in India has gained substantial attention from both consumers and the government with the latter providing subsidies on EV purchases. After the expiration of the Fame subsidies back in March this year, new EV policy was awaited which finally the Union Cabinet has rolled out. The new PM E-Drive scheme will now be pushing the EV mobility in India with the government allocating Rs. 10,900 crore budget for EVs.
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PM E-Drive Scheme: Details
The PM E-Drive scheme also called the PM Electric Drive Revolution Vehicle Enhancement has finally arrived to boost the electric mobility in India. The central government has announced Rs. 10,900 crore as a part of the new scheme which will offering subsidies on the EV purchases as well as manufacturing.
With the rollout of the PM E-Drive scheme, the older FAME (Faster Adoption and Manufacturing of Electric Vehicle) subsidies will be scraped. This means no special benefits for electric four wheelers as well as hybrid cars which have been the case previously.
It is worth noting that the budget allocation has substantially increased when compared to the Fame and Fame II subsidies rolled out in 2015 and 2019 respectively. For reference, approx. Rs. 895 crore were allocated as a part of FAME subsidy from year 2015- 2019, whereas, Rs. 10,000 crore were granted as as FAME II subsidies from 2019- 2022. However, the FAME II subsidies also received an extension with an added Rs. 1,500 crore budget till March 2024.
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PM E-Drive Scheme: Who Gets The Maximum Benefits?
The new PM E-Drive scheme does come with the same EV and green mobility promotion strategy in India. However, this time E2Ws, E3Ws, and and even e-buses will get benefits from the subsidies. The government has removed E4Ws from the list indicating no special benefits for the electric four wheeler buyers. The new scheme also has no subsidies for Hybrid cars which has been a speculation before its rollout.
That said, E2Ws, E3Ws, E-trucks, E-buses, and E-ambulances collectively have received Rs. 3,679 crores worth incentives as a part of the PM E-Drive scheme. Approx. Rs. 4,391 crore has been allocated to public transport EVs. The latest scheme will also be boosting the charging infrastructure with around 88,500 new charging stations being installed.
