The Centre recently unveiled operational guidelines for the rollout of nearly 72,300 public electric vehicle (EV) charging stations across the country, with an outlay of Rs 2,000 crore under the Rs 10,900 crore PM E-DRIVE scheme.

About PM E-DRIVE Scheme

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme is an initiative by the Indian government to accelerate the adoption of electric vehicles (EVs), build charging infrastructure, and develop the domestic EV manufacturing industry. Announced on September 29, 2024, it replaced earlier programs like FAME-II and EMPS-2024. 
 
Key objectives

• Increase EV adoption: The scheme provides upfront financial incentives to make purchasing EVs more affordable for buyers.
• Expand charging network: It supports the establishment of a robust network of public EV charging stations to address range anxiety among consumers.
• Strengthen manufacturing: Through a Phased Manufacturing Program (PMP), the scheme encourages local production of EVs and their components, boosting the "Aatmanirbhar Bharat" (self-reliant India) initiative.
• Reduce pollution: By promoting e-mobility, the scheme aims to lower transportation-related emissions and improve air quality. 

Scheme details and components

The PM E-DRIVE scheme has a financial outlay of ₹10,900 crore, initially running from October 1, 2024, to March 31, 2026. In August 2025, the scheme was extended for electric trucks, buses, and testing agencies until March 31, 2028. 

Demand incentives for vehicles

The scheme provides direct purchase subsidies for several categories of EVs, which are claimed via an Aadhaar-authenticated e-voucher. 

• Electric two-wheelers (e-2Ws): Up to ₹10,000 per vehicle in FY25 (₹5,000/kWh), and up to ₹5,000 in FY26 (₹2,500/kWh). Both personal and commercial e-2Ws with advanced batteries are eligible.
• Electric three-wheelers (e-3Ws): Subsidies are provided for commercial e-rickshaws, e-carts, and L5 vehicles equipped with advanced batteries.
• Electric buses (e-buses): A budget of ₹4,391 crore is allocated for the procurement of over 14,000 e-buses for public transport agencies in major cities.
• E-ambulances and e-trucks: Specific funds of ₹500 crore each are allocated to promote the use of e-ambulances and e-trucks. E-truck incentives require a scrapping certificate for old vehicles. 

Charging infrastructure development

The scheme allocates ₹2,000 crore to establish over 72,300 new public charging stations. 

• Subsidies: Tiered subsidies cover costs for upstream infrastructure and charging equipment, with higher support for high-priority locations like government premises, transport hubs, and highways.
• Nodal agency: Bharat Heavy Electricals Ltd (BHEL) acts as the Project Implementation Agency for deploying public charging stations.
• Digital Hub: A national-level mobile application will allow users to locate, book, and pay for charging slots. 

Upgradation of testing agencies

A budget of ₹780 crore is allocated to modernize and upgrade testing facilities under the Ministry of Heavy Industries to handle new EV technologies. 

Eligibility and claim process

• Eligibility: Only vehicles with advanced batteries and valid certificates from recognized testing agencies are eligible. For individual buyers, only one EV per category qualifies for the subsidy.
• Application: Upon purchase, the dealer generates an Aadhaar-authenticated e-voucher for the buyer. After being signed by both parties, the e-voucher is used by the manufacturer (OEM) to claim reimbursement from the government.
• Exclusions: EVs purchased by government departments or agencies are not eligible for demand incentives. 

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