PM E-DRIVE Scheme

Tags: Government Schemes

PM E-DRIVE Scheme

Why in news?

• Recently it was seen that Electric Vehicle Sales are Soaring.
• Through initiatives like the Electric Mobility Promotion Scheme (EMPS) and the PM E-DRIVE schemes, electric two-wheelers (e-2W) sales have surged to 5,71,411 units in 2024-25.
•  During the same period, sales of electric three-wheelers (e-3W), including e-rickshaws and e-carts, reached 1,164 units, while electric three-wheelers in the L5 category hit 71, 501 units.

What is PM E-DRIVE Scheme?

• The ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)’ Scheme, recently approved by the Cabinet with a financial outlay of Rs. 10,900 crore, came into effect on October 1, 2024, and will remain in force until March 31, 2026. 

Objective of the Scheme:

• The primary goal of the scheme is to accelerate the adoption of electric vehicles (EVs), develop essential charging infrastructure, and establish a robust EV manufacturing ecosystem across the country. Under this scheme, electric vehicle sales have already seen a record surge, reflecting the growing momentum of EV adoption.
•  The PM E-DRIVE initiative promotes mass mobility by supporting public transportation systems. 
• The key objective is to speed up the transition to electric vehicles by offering upfront incentives for EV purchases and encouraging the development of charging infrastructure. 

Significance:

• The scheme seeks to reduce transportation-related environmental impacts and improve air quality while promoting an efficient and competitive EV manufacturing sector in line with the Atma Nirbhar Bharatinitiative. 
• This will be accomplished through a phased manufacturing program (PMP) to boost domestic manufacturing and strengthen the EV supply chain. 
• The Ministry of Heavy Industries is leading the nationwide push for electric vehicle adoption, contributing to India's ambitious net-zero target for 2070.