Explainer - PM E-Drive Scheme

• The Ministry of Heavy Industries has issued operational guidelines for the deployment of  public EV charging stations across the country with a Rs 2,000-crore outlay under the Rs 10,900 crore PM E-DRIVE scheme.

• Bharat Heavy Electricals Limited (BHEL) will serve as the Project Implementation Agency for the deployment of EV public charging stations.

• The subsidy disbursal will follow a two-tranche system, with funds being released upon meeting compliance and performance benchmarks.

• The scheme will focus on urban centres with a population of over one million, smart cities, metro-connected satellite towns, state capitals, and high-density national and state highways. 

• Public transport hubs such as railway stations, airports, and fuel retail outlets have also been earmarked for receiving infrastructure support. 

• Government premises such as offices, residential complexes, hospitals, and educational institutions will receive 100 per cent subsidy on both upstream infrastructure and EV charging equipment, provided the chargers offer free public access.

PM E-Drive Scheme

• The government notified ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ on September 29, 2024 to provide impetus to green mobility in the country. 

• The scheme has an outlay of Rs 10,900 crore over a period of two years from April 1, 2024 to March 31, 2026.

• It aims for faster adoption of electric vehicles (EVs), setting up of charging infrastructure and development of EV manufacturing eco-system in the country.

• With greater emphasis on providing affordable and environment friendly public transportation options for the masses, the scheme will be applicable mainly to vehicles used for public transport or those registered for commercial purposes in e-3W, e-trucks and other new emerging EV categories.

• The Electric Mobility Promotion Scheme (EMPS) 2024 implemented for the period of six months from April 1, 2024 to September 30, 2024 is subsumed in PM e-DRIVE Scheme.

Components of the scheme:

i) Subsidies: Rs 3,679 crore as demand incentives for e-2W, e-3W, e-ambulances, e-trucks & other new emerging EV categories.

ii) Grants for creation of capital assets: Rs 7,171 crore as grants for e-buses, establishment of network of charging stations and upgradation of testing agencies identified under this scheme.

iii) Administration of Scheme including IEC (Information, Education & Communication) activities and fee for Project Management Agency (PMA).