PM E-DRIVE Scheme (Current Events)
PM E-DRIVE Scheme (Current Events)
Why In News:
The progress under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme was recently highlighted, India's flagship EV demand-incentive programme, supporting 14,028 electric buses and 0.3 million e-3 wheelers.
Source: PIB, Ministry of Heavy Industries, 7 August 2026
About the Scheme
Approved by the Union Cabinet in September 2024 with an outlay of about ₹10,900 crore, succeeding the earlier FAME II scheme.
Funds 14,028 electric buses across nine major cities (population above 40 lakh, including Delhi, Mumbai, Kolkata, Chennai, Bengaluru) through a Payment Security Mechanism.
Demand Incentives: The Scheme provides incentives for EV buyers, limited to 15% of the ex-factory price or a fixed cap per vehicle (whichever is lower), with eligibility restricted to EVs below a defined price threshold.
Charging Infrastructure: The scheme plans to install around 72,300 public fast chargers across major cities and selected highways to accelerate EV adoption.
Digital Platform: Bharat Heavy Electricals Ltd (BHEL) will develop a centralised “Super App” enabling users to locate chargers, book slots, and make payments seamlessly.
Testing Ecosystem: An allocation of 780 crore is provided to upgrade testing agencies under the Ministry of Heavy Industries with advanced technologies.
Covers electric ambulances and electric trucks for the first time in an Indian EV incentive programme, along with charging infrastructure.
Scheme tenure has been extended by two years, up to 31 March 2028, for e-buses, e-trucks, and testing-agency components.
Objectives and Key Facts for Prelims
Aims to cut oil import dependence (India imports over 88% of crude oil), reduce vehicular emissions, and strengthen domestic EV manufacturing.
Aligned with India's Net Zero by 2070 target announced at COP26, Glasgow (2021).
Convergence Energy Services Limited (CESL), a PSU, manages demand aggregation for e-bus procurement under the scheme.
The Ministry of Heavy Industries is the nodal ministry; the National Electric Mobility Mission Plan (NEMMP), the question 2013 was India's earliest comprehensive e-mobility framework.