- CarGraze
- Nov 05, 2024
- Car News
India’s Push for EVs: The New PM Electric Drive Scheme Set to Revolutionize Transportation
The Indian government is taking a big leap toward an electric future with its recent PM Electric Drive Revolution in Innovative Vehicle Enhancement (PME-Drive) scheme. Spearheaded by the Ministry of Heavy Industries, this initiative, recently green-lit by Prime Minister Narendra Modi’s Union Cabinet, is all about accelerating the shift to electric vehicles (EVs) with a hefty budget and enticing incentives.
The PME-Drive scheme has an allocated budget of ₹10,900 crore for the next two years. To put this in perspective, the previous FAME (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles) scheme, launched in 2015, started with ₹900 crore, eventually growing to ₹10,000 crore in its second phase.
So, how does PME-Drive stand out from FAME? With a focus on diverse electric transport options, it allocates ₹3,679 crore for various EV categories, including two-wheelers, three-wheelers, e-ambulances, and e-trucks, aiming to grow the EV market share by 24.79%. This time, a major addition to the scheme is the introduction of e-vouchers. Gone are the days of uncertainty about whether manufacturers passed FAME benefits to customers. Now, EV buyers receive an Aadhaar-authenticated e-voucher directly on their mobile devices, giving them an instant discount at the point of purchase.
The scheme is particularly keen on supporting specific sectors, earmarking ₹500 crore for e-ambulances, ₹4,391 crore to introduce over 14,000 electric buses across major cities, and ₹500 crore for e-trucks. Extra incentives are also available for those who choose to scrap older vehicles.
Charging infrastructure is a significant focus of the PME-Drive scheme, with plans to establish over 22,000 fast chargers for electric cars, 1,800 for buses, and 48,000 for two- and three-wheelers nationwide, especially along highways. With ₹2,000 crore allocated just for this purpose, the government is setting the stage for convenient EV charging access. The plan also includes ₹780 crore to modernize testing facilities to keep up with evolving EV technology.
However, there’s a twist. Compared to FAME, PME-Drive provides lower incentives. For instance, the subsidy for electric two-wheelers drops from ₹66,000 to ₹10,000, and for three-wheelers from ₹1.11 lakh to ₹50,000. Even electric buses see a subsidy reduction, capped at ₹35 lakh versus the previous ₹50 lakh. Despite these adjustments, major players in the Indian auto industry, like Mahindra & Mahindra and Tata Motors, are throwing their weight behind PME-Drive, confident that it will fuel EV adoption across the country.
Government officials believe that as EVs gain traction, subsidies will gradually become less necessary. Union Minister Nitin Gadkari even suggested that in a couple of years, EV prices might rival those of petrol and diesel vehicles.
Aiming for impressive targets, the PME-Drive scheme wants electric two-wheelers to account for 10% of new vehicle sales and three-wheelers to reach 15%. Furthermore, it mandates over 50% localization in EV production, ensuring that most of these vehicles are made domestically.
Starting from October 1, the PME-Drive scheme will transition participants from the earlier Electric Mobility Promotion Scheme into this new, ambitious program.
Also Read: How to Apply for the PME-Drive Scheme.
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