The ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ has been notified on 29.09.2024 by Ministry of Heavy Industries (MHI) to provide impetus to the green mobility & development of EV manufacturing eco-system in the country. The scheme has an outlay of ₹10,900 crore over a period of two years from 01.04.2024 to 31.03.2026. The Electric Mobility Promotion Scheme (EMPS) 2024 implemented for the period of six months from 01.04.2024 to 30.09.2024, is subsumed in PM E-DRIVE scheme. Rs. 423.23 crore has been spent under the scheme from 01/04/2024 till 28/02/2025 as per details provided below:
| Expenditure Head | Amount in Rs. crore |
| Subsidies i.e. Demand incentive for e-2w, e-3w: e-rickshaw/ e-cart and L5 | 422 |
| Admin Expenses including IEC | 1.23 |
| Total | 423.23 |
The PM E-DRIVE scheme does not directly provide subsidies to State
Governments for the purchase of electric vehicles. Under the scheme, incentives are primarily provided to buyers (consumers/end users) of electric vehicles in the form of an upfront reduction in the purchase price of EVs.This incentive or concession is then reimbursed to the Original Equipment Manufacturers (OEMs) by the Ministry of Heavy Industries (MHI).
An allocation of Rs.2,000 crore has been made under the PM E-DRIVE Scheme for setting up of public charging infrastructure including e-buses and electric vehicles (EVs) on pan India basis. As per information received from Ministry of Power, 25,202 EV charging stations were installed in the country as on 17/12/2024.
The Ministry of Power has issued “Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure-2024” on 17.09.2024. These guidelines emphasize the role of public-private partnerships in expanding the EV charging infrastructure. Setting up EV charging station has been designated as de-licensed activity, simplifying the process for businesses.
The PM E-DRIVE Scheme does not directly provide subsidies to State Governments or Original Equipment Manufacturers (OEMs) for the purchase of electric vehicles. Incentives are primarily provided to buyers (consumers/end users) of electric vehicles in the form of an upfront reduction in the purchase price of EVs under the Scheme.This incentive or concession is then reimbursed to the OEMs by MHI. Rs.422 crore has been reimbursed to OEMs under the scheme for e-2Ws and e-3Ws, from 01/04/2024 until 28/02/2025. Further, no grants have been disbursed for deployment of e-buses to Public Transport Bodies under the scheme, so far.
The progressive localisation mandate under the phased manufacturing program (PMP) of PM E-DRIVE Scheme promotes domestic manufacturing of EV and its components.