The centre notified PM E-DRIVE scheme Monday. A gazette notification stated the scheme could have an outlay of INR 10,900 crore, and shall be carried out from October 1, 2024, to March 31, 2026. It goals for quicker adoption of electrical automobiles (EVs), establishing of charging infrastructure and growth of EV manufacturing eco-system within the nation.
This scheme will even soak up the continued Electrical Mobility Promotion Scheme (EMPS), 2024. “The variety of automobiles and the expenditure underneath EMPS, 2024 is subsumed underneath the PM E-DRIVE Scheme,” the notification stated.
PM E-DRIVE presents subsidies for electrical two, and three wheelers, e-ambulances, e-trucks and ‘different new rising EV classes.’ There will even be grants for creation of capital property comparable to e-buses, institution of community of charging stations and upgradation of testing companies recognized underneath this scheme.
However efforts of the Central Authorities to advertise e-mobility wants supplemental help from State Governments. “States want to supply bouquet of fiscal and non-fiscal incentives,” the notification said whereas itemizing exemption from permits, concessional street tax, toll tax, parking charges, registration expenses or their waiver as doable incentives.
In all, sops price INR 8,070 crore have been earmarked for EVs. Buses get the lion’s share at INR 4,391 crore, adopted by two-wheelers at INR 1,772 crore.
A Phased Manufacturing Programme (PMP) has additionally been notified underneath PM E-DRIVE to help localisation of EV elements. EV chargers might want to have a minimal of fifty% home worth addition (DVA) from December 1, 2024, to be eligible for sops underneath the scheme.
The notification additionally stated monetary help for electrical two-wheelers might be halved to INR 5,000 per automobile from 2025-26. For electrical three-wheelers, the subsidy might be capped at INR 25,000 per automobile.
The PM E-DRIVE, like its predecessor Sooner Adoption and Manufacturing of Electrical Autos (FAME) scheme, is geared toward subsidising domestically manufactured automobiles. However the earlier iteration was marred with situations of firms promoting largely imported automobiles and wrongly availing subsidies. The federal government has tried to deal with these considerations within the new scheme by way of stringent checks.
