India has introduced a new electric vehicle (EV) scheme offering incentives for commercial EVs, electric two-wheelers (E2Ws), and electric three-wheelers (E3Ws). The scheme, which replaces FAME II, allocates most of its subsidies to e-buses, while electric cars do not receive any incentives under this program.
According to the Press Information Bureau of India, on September 11, the Indian government introduced a new scheme, PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM eDRIVE), designed to accelerate the adoption of EVs in the country. The scheme, implemented by the Ministry of Heavy Industries, allocates INR109 billion over two years.
To incentivize the purchase of EVs, the government is offering subsidies and demand incentives for E2Ws, E3Ws, e-ambulances, and e-trucks. This will support the acquisition of 2.479 million E2Ws, 316,000 E3Ws, and 14,028 e-buses.
The scheme allocates INR43.91 billion to acquire 14,028 e-buses by state transport agencies and public transport operators.
The scheme allocates INR5 billion to deploy e-ambulances, promoting comfortable patient transport. Performance and safety standards for these e-ambulances will be developed in collaboration with relevant government departments.
Addressing the range anxiety of EV buyers, the scheme promotes the installation of electric vehicle public charging stations (EVPCS). A total of 22,100 fast charge INR for e4Ws, 1800 for e-buses, and 48,400 for e2W/3Ws will be installed in selected cities and along highways.
The PM eDRIVE scheme aims to reduce the environmental impact of transportation and improve air quality by providing upfront incentives for electric vehicle purchases and facilitating the establishment of necessary charging infrastructure.
Meanwhile, according to Autocar India, details on the subsidies per vehicle and localization requirements will be provided in an upcoming government notification. Ashwini Vaishnaw, Union Minister of Information and Broadcasting, emphasized that localization is crucial to the scheme, highlighting the importance of developing domestic technologies and supply chains.
Source: Ministry of Heavy Industries of India, September 2024
