PM E Drive Subsidy Scheme 2024 apply online process started by central government, get subsidy on purchase of EV 2 wheelers and EV 3 wheelers through e-Vouchers. New PM E Drive Scheme is offering Rs. 10,000 subsidy for 2-wheelers electric vehicles and Rs. 50,000 subsidy for 3-wheelers electric vehicles. Subsidy would also be given on e-ambulances, e-trucks, e-buses as well as other emerging EVs.
Full form of PM E Drive is PM Electric Drive Revolution in Innovative Vehicle Enhancement. It is a replacement of the already running Fame 2 Subsidy Scheme. Read this article till the end to know how to apply online for e-vouchers under PM E-Drive Scheme.
Ministry of Heavy Industries has introduced e-vouchers for EV buyers to avail demand incentives under the PM E Drive Subsidy scheme.
At the time of purchase of the EV, the scheme portal will generate an Aadhaar authenticated e-Voucher for the buyer.
A link to download the e- voucher shall be sent to the registered mobile number of the buyer.
The e-voucher will be signed by the buyer and submitted to the dealer to avail demand incentives under the scheme.
Afterwards, the e-Voucher will also be signed by the dealer and uploaded on the PM E-DRIVE portal.
The signed e-voucher shall be sent to the buyer and dealer through an SMS.
Using these signed e-vouchers, OEM can claim reimbursement of demand incentives under the scheme.
PM E Drive Scheme portal would soon be launched through which EV buyers would be able to get e-vouchers.
Subsidy Amount under PM E Drive Scheme
The new PM E Drive Subsidy scheme aims to fix loopholes and shortcomings of the past FAME schemes to address problems like improper subsidy claims for imported vehicles. This new electric vehicle (EV) subsidy scheme shall provide Rs. 10,000 for each electric 2-wheeler sold till March 2025 and Rs. 50,000 for electric 3-wheelers. However, subsidy amount under PM E Drive scheme will get reduced in half in the next financial year. For instance, the electric 3-wheeler subsidy will reduce to Rs. 25,000 from April 2025.
Objective of PM E-Drive Scheme
PM E Drive Subsidy Scheme aims to:-
Promote mass mobility by supporting means of public transportation.
Expedite the adoption of EVs by providing upfront incentives for their purchase.
Facilitate the establishment of essential charging infrastructure for EVs.
Promote EVs to reduce the environmental impact of transportation.
Improve air quality.
Encourage domestic manufacturing and strengthening of EV supply chain.
Address concerns regarding environmental pollution and fuel security.
Make significant progress in promoting sustainable transportation solutions.
Promote investment in the EV sector and associated supply chain.
Achieve a 10% market share for electric 2-wheelers by March 2026.
Achieve 15% market share for electric 3-wheelers by March 2026.
Promote an efficient, competitive and resilient EV manufacturing industry thereby promoting Aatmanirbhar Bharat.
Create significant employment opportunities along the value chain through manufacturing and establishment of EV charging infrastructure.
The electric cars have been excluded this time in PM E Drive Subsidy Scheme. It is because electric cars are already getting benefited from a lower 5% GST rate.
Types of Electric Vehicles in PM E-Drive Scheme
The PM E-Drive Subsidy scheme focus on the following types of electric vehicles:-
Electric 2-wheelers,
Electric 3-wheelers,
E-ambulances,
E-trucks,
E-Buses,
Other emerging EVs.
Number of EVs Covered in PM E Drive Scheme
Subsidies/Demand incentives worth Rs. 3,679 crore have been provided to incentivize e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs. The government expects the PM E Drive Subsidy Scheme to support 24.79 lakh electric 2-wheelers, 3.16 lakh electric 3-wheelers, and 14,028 e-buses. Moreover, Indian government has allocated Rs. 4,391 crore for procuring 14,028 e-buses by STUs/public transport agencies in 9 cities. These cities includes Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune and Hyderabad.
Rs. 500 crore has been allocated for incentivising e-trucks, with incentives given to those with a scrapping certificate from an approved vehicles scrapping centre. The scheme allocates Rs. 500 crore for deploying e-ambulances. The total outlay for the PM E Drive Scheme will be Rs. 10,900 crore and this will be for a period of 2 years.
Installation of EV Public Charging Stations (EVPCS)
Electric Vehicle Public Charging Stations (EVPCS) shall be installed in the selected cities with high EV penetration and also on selected highways. PM E Drive Subsidy scheme proposes to install 22,100 fast chargers for electric 4-wheelers, 1800 fast chargers for e-buses and 48,400 fast chargers for both electric 2 and 3-wheelers at a Rs. 2,000 crore outlay to address the range anxiety of EV buyers. Moreover, new EV subsidy scheme also budgets Rs. 780 crore to modernize testing agencies of the Ministry of Heavy Industries.
Need for PM E Drive Subsidy Scheme Launch
The new PM E-DRIVE scheme would address shortcomings seen in the previous FAME phases. The biggest shortcoming was that companies were selling mostly imported vehicles and claiming subsidies. However, Fame subsidy scheme was originally intended for domestically produced EVs. The government had to consequently take action to recover these misappropriated funds.
To overcome these shortcoming, PM E Drive Subsidy Scheme has been launched. The companies which are yet to repay the improperly claimed subsidies won’t be able to join the new scheme. Furthermore, there will now be conformity of production (COP) test conducted every six months to ensure transparency in PM E-Drive scheme implementation.
