FAME-II AND PM E-DRIVE SCHEMES
Why in News?
The FAME-II (Faster Adoption and Manufacturing of Electric Vehicles), PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement). While the scheme was initially set to end in March 2026, the government has extended support for e-trucks, e-buses, and testing agencies until March 31, 2028, due to the longer development cycles in these segments.
About
- Transition to PM E-DRIVE: FAME-II ended on March 31, 2024. After a brief transitional period under the Electric Mobility Promotion Scheme (EMPS) 2024, the government launched PM E-DRIVE on October 1, 2024.
- Target Milestones (2025–2026): By late 2025, the PM E-DRIVE scheme successfully met its subsidy targets for certain categories, such as e-3 Wheelers (L5), ahead of schedule.
- Budget 2025–2026 Update: The government allocated ₹4,000 crore specifically for PM E-DRIVE in the 2025–26 budget, shifting focus from broad consumer subsidies toward public transport and manufacturing efficiency.
FAME-II vs. PM E-DRIVE
| Feature |
FAME-II (Ended) |
PM E-DRIVE (Active) |
| Duration |
April 2019 – March 2024 |
Oct 2024 – March 2026 (Ext. to 2028 for some) |
| Total Outlay |
₹11,500 crore |
₹10,900 crore |
| Vehicle Focus |
2W, 3W, 4W (Private/Commercial), Buses |
2W, 3W, Buses, E-Ambulances, E-Trucks |
| Private Cars |
Included (E-4W) |
Explicitly Excluded |
| Claim Process |
Dealer-led documentation |
Aadhaar-authenticated E-Vouchers |
|
Subsidies & Targets:
- ₹3,679 crore is allocated for demand incentives targeting 24.79 lakh e-2Ws and 3.16 lakh e-3Ws.
- Incentive Cap: Subsidies are generally capped at 15% of the ex-factory price.
New Segments:
- E-Ambulances: ₹500 crore allocated for high-tech medical transport.
- E-Trucks: ₹500 crore allocated; incentives are only available upon submission of a vehicle scrapping certificate from an approved centre.
Public Transport Priority:
- E-Buses: ₹4,391 crore allocated to support the deployment of 14,028 e-buses in nine major cities (Mumbai, Delhi, Bengaluru).
Infrastructure & Testing:
- Charging Network: ₹2,000 crore set aside to install 72,300 public fast chargers (including 22,100 for e-4Ws and 48,400 for e-2W/3Ws).
- Modernization: ₹780 crore allocated for upgrading testing agencies under the Ministry of Heavy Industries (MHI) to handle emerging EV technologies.
- Digital Innovation: Buyers use the PM E-DRIVE app to generate an e-voucher via facial recognition, which is then submitted to the dealer for an instant discount.
- Localisation: The scheme mandates a Phased Manufacturing Programme (PMP) with a minimum of 50% Domestic Value Addition (DVA) to encourage "Make in India"
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