India Launches PM Electric Drive Scheme to Boost Electric Vehicles
The central government of India has announced the PM Electric Drive subsidy scheme with a budget of Rs10,900 crore. This scheme will start on October 1, 2024, and run until March 31, 2026. The goal is to encourage the use of electric vehicles (EVs) in India, focusing on electric two-wheelers, three-wheelers, buses, and other new EV types.
Background and Evolution of EV Promotion Schemes
The PM E-DRIVE Scheme follows earlier programs like FAME-I and FAME-II. FAME-I started in 2015 with Rs795 crore, later increased to Rs895 crore. FAME-II began in 2019 with Rs10,000 crore, later raised to Rs11,500 crore, and lasted until March 2024. The Electric Mobility Promotion Scheme 2024 (EMPS-2024) followed with Rs778 crore for April to September 2024. The new PM E-DRIVE Scheme expands on these efforts.
Key Components of PM E-DRIVE
The PM E-DRIVE Scheme has three main parts: demand incentives for EVs, grants for creating capital assets, and administrative support. Demand incentives will help reduce the cost of EVs like e-2Ws, e-3Ws, e-ambulances, and e-trucks. For 2024-25, the incentive is Rs5,000 per kWh for e-2Ws and e-3Ws, dropping to Rs2,500 per kWh in 2025-26.
Grants will also support the creation of charging stations, development of e-buses, and upgrading EV testing facilities. A total of Rs7,171 crore is set aside for these capital assets. States are encouraged to offer additional support like road tax waivers and reduced toll fees.
Implementation and Monitoring
The scheme’s Rs10,900 crore budget is split over two years: Rs5,047 crore for 2024-25 and Rs5,853 crore for 2025-26. The government aims to support over 14,000 e-buses, set up 2,000 charging stations, and upgrade testing facilities. An inter-ministerial committee, chaired by the Secretary of Heavy Industries, will monitor the scheme and address any issues.
To qualify for incentives, EVs must be registered under the Central Motor Vehicle Rules and use advanced battery technology.
Doubts Revealed
PM Electric Drive Scheme -: This is a new plan by the Indian government to help more people buy and use electric vehicles (EVs). ‘PM’ stands for Prime Minister.
subsidy -: A subsidy is money given by the government to help reduce the cost of something. In this case, it helps make electric vehicles cheaper.
Rs10,900 crore -: This is a large amount of money, specifically 10,900 crore rupees. One crore is equal to 10 million rupees.
electric vehicles (EVs) -: Electric vehicles are cars, bikes, or buses that run on electricity instead of petrol or diesel.
demand incentives -: These are benefits or discounts given to people to encourage them to buy electric vehicles.
charging infrastructure -: This refers to the places and equipment needed to charge electric vehicles, like charging stations.
capital asset creation -: This means building or buying things that will last a long time, like charging stations or electric buses.
inter-ministerial committee -: This is a group of people from different government departments who will work together to make sure the scheme is carried out properly.
