PM E-DRIVE scheme with ₹10,900 crore outlay announced for electric vehicles

• The PM E-DRIVE scheme, aimed at boosting the adoption of electric vehicles has been notified.
• The scheme comes into force from October 1, 2024 and will end on March 31, 2026.
• The scheme has an outlay of ₹10,900 crore, spread over two years.

Prime Minister Narendra Modi-led central government has notified a new scheme aimed at boosting the adoption of electric vehicles (EVs). The scheme, dubbed as PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) comes with an outlay of ₹10,900 crore.

The PM E-DRIVE scheme will be implemented from tomorrow, October 1, 2024, and will be in force till March 31, 2026. The total outlay of ₹10,900 crore is spread over two years, with ₹5,047 crore allocated for FY 2024-25 and ₹5,853 crore for FY 2025-26.

The scheme is aimed at accelerating the adoption of EVs in the country, with a focus on electric two-wheelers, electric three-wheelers (e-3Ws) and more. The scheme will also offer grants for the creation of capital assets such as electric buses, the establishment of a network of charging stations and the upgradation of testing agencies identified under this scheme.


The PM E-DRIVE Scheme has replaced the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME-II) scheme.

Launched in 2015, the FAME-I scheme had an initial outlay of ₹795 crore, which was later extended to ₹895 crore. The government introduced the FAME-II scheme in 2019 with a budget of ₹10,000 crore, which was later enhanced to ₹11,500 crore to extend its support for electric vehicles until March 2024.

Following this, the Electric Mobility Promotion Scheme 2024 (EMPS-2024) was rolled out with a fund allocation of ₹778 crore from April 1, 2024, to September 30, 2024. The PM E-DRIVE subsumes the ongoing EMPS-2024 scheme.

A major focus of the scheme is providing demand incentives to lower the acquisition cost of EVs for consumers. For FY 2024-25, the scheme proposes a demand incentive of ₹5,000 per kWh for e-2Ws and e-3Ws, which will be reduced to ₹2,500 per kWh in FY 2025-26.

A major part of the outlay, around ₹8,070 crore has been earmarked for EVs. This includes ₹4,391 crore for electric buses and ₹1,772 crore for electric two-wheelers.

As part of the scheme, the central government aims to support the purchase of over 14,000 e-buses, establish 2,000 charging stations, and upgrade EV testing facilities across the country.

A total of ₹7,171 crore has been allocated for capital asset creation. The scheme encourages states to provide supplemental support through fiscal and non-fiscal incentives.

With inputs from ANI.

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