skip to content
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post

Cabinet Approves INR109 Billion PM EDRIVE Scheme

- Advertisement -

Against the expectations surrounding the FAME-III, the ₹109 billion PM E-DRIVE scheme will no longer support E-cars and hybrid vehicles except ambulances.

On Wednesday, the Union Cabinet approved a new scheme called ‘PM Electric Drive Revolution In Innovative Vehicle Enhancement’ (PM E-DRIVE) to boost electric vehicle adoption in India. With a budgetary outlay of ₹109 billion, set aside for two years, this will replace the previous FAME initiative, which concluded in March.

Contrary to initial expectations, the new scheme does not extend support to electric cars or hybrid vehicles (except ambulances). Instead, it focuses on providing subsidies for electric two-wheelers, three-wheelers, buses, and trucks. The scheme aims to support 2.48 million electric two-wheelers, 316,000 electric three-wheelers, and 14,028 electric buses.

- Advertisement -

To benefit from demand incentives, buyers of electric vehicles will receive e-vouchers through the scheme’s portal, which will generate an Aadhaar-authenticated e-voucher at the time of purchase.

Information and Broadcasting Minister Ashwini Vaishnaw announced that the PM E-DRIVE Scheme will add 88,500 electric vehicle chargers, a decision made in a Union Cabinet meeting led by Prime Minister Modi.

A total of ₹43.91 billion has been allocated for purchasing electric buses by state transport agencies and public transport organisations. The demand for these buses will be managed by CESL in nine cities with populations exceeding 4 million, including Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune, and Hyderabad. Additionally, intercity and interstate electric buses will receive support in coordination with state authorities.’

Additionally, ₹5 billion has been set aside for the introduction of electric ambulances. This new government initiative aims to encourage the use of electric ambulances to ensure more comfortable patient transportation.

An allocation of another ₹5 billion has been set aside to encourage the adoption of electric trucks.

To alleviate range anxiety among electric vehicle (EV) users, the government will establish public electric vehicle charging stations (EVPCS). These stations will be set up in cities with significant EV use and along selected highways. The plan includes installing 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for electric buses, and 48,400 fast chargers for electric two-wheelers and three-wheelers. The outlay for the EVPCS is ₹2,000 crore.

Furthermore, Vaishnaw announced that the PM-eBus Sewa-Payment Security Mechanism (PSM) scheme, designed to aid public transport authorities (PTAs) in acquiring and operating electric buses, has a budget of ₹34.35 billion. This funding will support the deployment of 38,000 electric buses.

According to another official statement, the scheme will facilitate the introduction of over 38,000 electric buses between FY 2024-25 and FY 2028-29. It will also provide support for the operation of these buses for up to 12 years following their deployment.

Currently, most buses used by PTAs rely on diesel or CNG, harming the environment. Electric buses offer eco-friendly benefits and lower operating costs but come with high initial expenses and potentially lower revenue.

To address these costs, PTAs use a public-private partnership (PPP) model with a gross cost contract (GCC), where OEMs or operators purchase and manage the electric buses, receiving monthly payments. However, OEMs and operators hesitate due to fears of defaulting to payment.

The PSM programme addresses this by guaranteeing prompt payments through a special fund. If PTAs fail to pay, CESL will cover the costs, and the PTAs will reimburse the funds later.

The FAME Scheme, introduced in April 2015, uses consumer incentives to boost the production and sale of electric vehicles. Over 1.6 million electric vehicles have benefited from this scheme.

- Advertisement -

Most Popular Articles

Shubha Mitra
Shubha Mitra
Shubha is a journalist at EFY. She is keenly interested in India's evolving electronics ecosystem. Her focus revolves around government policies, legislation, and public-private partnerships related to the industry.

Eastman, Urja Mobility To Power Electric Three-Wheelers

0
Integrating IoT and software solutions for enhanced mobility, Eastman Auto partners with Urja Mobility to supply batteries for electric three-wheelers in India. On Tuesday,...

ISRO, IIT Madras Unveil India’s Indigenous IRIS Chip

0
Powering India’s leap towards self-reliance in semiconductors for space and IoT systems under the RISC-V initiative, ISRO and IIT Madras have jointly launched IRIS...

Lam Research To Invest ₹100B In India

0
Aligning with government efforts to reduce import dependency, Lam Research is set to invest ₹100 billion in Bengaluru, India, for semiconductor manufacturing. Lam Research,...

BEL, Safran Partner To Boost India’s Defence Manufacturing

0
To locally produce cutting-edge HAMMER weapon systems, France's Safran Electronics join hands with BEL, expands manufacturing and R&D operations in Bengaluru. Defence PSU Bharat...

Delvitech Expands AI Innovation India

0
Focused on AI-powered AOI and SPI systems, the company is committed to driving innovation, optimizing production quality, and delivering world-class solutions tailored to the...
Khushal Panchal,  chief operating officer (COO), PCB Power

“We Differentiate Ourselves By Producing Radio Frequency PCBs For Wireless Communication Devices” – Khushal...

0
With technology and policy support, Indian PCB manufacturing is at a turning point. Can innovation and scale match global giants? PCB Power leads the...
Jayesh Ranjan IAS, Special Secretary, Department of Industries and Commerce and ITE&C, Government Of Telangana

“To Compensate For Telangana’s Lack Of A Wet Port,Our Incentives Help ESDM And Semiconductor...

0
Despite logistics challenges, how is Telangana securing billion-dollar investments in electronics? Will the state unveil a new semiconductor policy soon? Jayesh Ranjan, IAS, from...
Shrinivas Kulkarni CFO, Cyient DLM

“Acquisitions That Help Address Gaps In Our Design Capabilities….. Interest Us” – Shrinivas Kulkarni,...

0
Over the past five years, Cyient DLM (formerly Rangsons Electronics), a subsidiary of Cyient Limited, has rapidly expanded its footprint in the design-led manufacturing...
Akshay-Kashyap-of-Greenfuel-Energy

“Many Companies Avoid Pack Testing And Validation Because It Is Time-Consuming” – Akshay Kashyap,...

0
Battery pack reliability goes beyond cell quality—it relies on precise engineering, thorough testing, and tailored thermal management. In a conversation with EFY’s Nitisha Dubey,...
Sambit Parida, CTO and Co-Founder of IG Drones

“If A Hacking Attempt Is Detected, The System Automatically Secures Or Erases Critical Data...

0
From handling defence-specific tasks with or without human intervention to withstanding extreme weather, how capable are drones? What if someone tries to hack sensitive...

Meridian Joins Altair’s Startup Programme To Boost UAV Tech

0
Eyeing to drive innovation in UAVs and hybrid power tech with simulation tools and expert support, Altair teams up with Meridian Flight Systems in...

Mitsubishi Electric Acquires Stake In Itanta Analytics Startup

0
Aiming to boost manufacturing digitalisation and efficiency with simplified automation solutions, Mitsubishi Electric India invests in Itanta Analytics to develop no-code data analysis tools....

Union Budget 2025-26: What It Has For The Electronics Sector?

0
With reduced and exempted duties, tax relief for manufacturing, and increased support for startups, this Budget addresses a broader range of issues within the...

IndiaAI Mission Expands To 18,693 GPUs For R&D

0
Aiming to support R&D and ethical AI, Union Minister Ashwini Vaishnaw announced the expansion of IndiaAI’s GPU infrastructure to 18,693 to benefit startups and...
Sambit Parida, CTO and Co-Founder of IG Drones

Innovative Drone Technologies from IG Drones Driving Efficiency Across Sectors

0
Haryana-based IG Drones develops advanced surveillance, agriculture, and defence technologies, focusing on improving adaptability and operational precision. Founded in 2018 by Om Prakash and Bodhisattwa...

Industry's Buzz

Eastman, Urja Mobility To Power Electric Three-Wheelers

0
Integrating IoT and software solutions for enhanced mobility, Eastman Auto partners with Urja Mobility to supply batteries for electric three-wheelers in India. On Tuesday,...

ISRO, IIT Madras Unveil India’s Indigenous IRIS Chip

0
Powering India’s leap towards self-reliance in semiconductors for space and IoT systems under the RISC-V initiative, ISRO and IIT Madras have jointly launched IRIS...

Lam Research To Invest ₹100B In India

0
Aligning with government efforts to reduce import dependency, Lam Research is set to invest ₹100 billion in Bengaluru, India, for semiconductor manufacturing. Lam Research,...

BEL, Safran Partner To Boost India’s Defence Manufacturing

0
To locally produce cutting-edge HAMMER weapon systems, France's Safran Electronics join hands with BEL, expands manufacturing and R&D operations in Bengaluru. Defence PSU Bharat...

Delvitech Expands AI Innovation India

0
Focused on AI-powered AOI and SPI systems, the company is committed to driving innovation, optimizing production quality, and delivering world-class solutions tailored to the...

Learn From Leaders

Khushal Panchal,  chief operating officer (COO), PCB Power

“We Differentiate Ourselves By Producing Radio Frequency PCBs For Wireless Communication Devices” – Khushal...

0
With technology and policy support, Indian PCB manufacturing is at a turning point. Can innovation and scale match global giants? PCB Power leads the...
Jayesh Ranjan IAS, Special Secretary, Department of Industries and Commerce and ITE&C, Government Of Telangana

“To Compensate For Telangana’s Lack Of A Wet Port,Our Incentives Help ESDM And Semiconductor...

0
Despite logistics challenges, how is Telangana securing billion-dollar investments in electronics? Will the state unveil a new semiconductor policy soon? Jayesh Ranjan, IAS, from...
Shrinivas Kulkarni CFO, Cyient DLM

“Acquisitions That Help Address Gaps In Our Design Capabilities….. Interest Us” – Shrinivas Kulkarni,...

0
Over the past five years, Cyient DLM (formerly Rangsons Electronics), a subsidiary of Cyient Limited, has rapidly expanded its footprint in the design-led manufacturing...
Akshay-Kashyap-of-Greenfuel-Energy

“Many Companies Avoid Pack Testing And Validation Because It Is Time-Consuming” – Akshay Kashyap,...

0
Battery pack reliability goes beyond cell quality—it relies on precise engineering, thorough testing, and tailored thermal management. In a conversation with EFY’s Nitisha Dubey,...
Sambit Parida, CTO and Co-Founder of IG Drones

“If A Hacking Attempt Is Detected, The System Automatically Secures Or Erases Critical Data...

0
From handling defence-specific tasks with or without human intervention to withstanding extreme weather, how capable are drones? What if someone tries to hack sensitive...

Startups

Meridian Joins Altair’s Startup Programme To Boost UAV Tech

0
Eyeing to drive innovation in UAVs and hybrid power tech with simulation tools and expert support, Altair teams up with Meridian Flight Systems in...

Mitsubishi Electric Acquires Stake In Itanta Analytics Startup

0
Aiming to boost manufacturing digitalisation and efficiency with simplified automation solutions, Mitsubishi Electric India invests in Itanta Analytics to develop no-code data analysis tools....

Union Budget 2025-26: What It Has For The Electronics Sector?

0
With reduced and exempted duties, tax relief for manufacturing, and increased support for startups, this Budget addresses a broader range of issues within the...

IndiaAI Mission Expands To 18,693 GPUs For R&D

0
Aiming to support R&D and ethical AI, Union Minister Ashwini Vaishnaw announced the expansion of IndiaAI’s GPU infrastructure to 18,693 to benefit startups and...
Sambit Parida, CTO and Co-Founder of IG Drones

Innovative Drone Technologies from IG Drones Driving Efficiency Across Sectors

0
Haryana-based IG Drones develops advanced surveillance, agriculture, and defence technologies, focusing on improving adaptability and operational precision. Founded in 2018 by Om Prakash and Bodhisattwa...