In a major boost to electric mobility in India, Union Heavy Industries Minister HD Kumaraswamy revealed on Thursday that buyers of electric two-wheelers can benefit from a maximum subsidy of up to Rs 10,000 under the new PM E-DRIVE Scheme, which is set to roll out soon. This announcement comes as part of the government’s broader initiative to promote electric vehicles (EVs) and reduce carbon emissions, helping India move towards a greener future. Here’s a detailed look into the scheme and its benefits.
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What is the PM E-DRIVE Scheme?
The PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) Scheme is a government initiative aimed at encouraging the adoption of electric vehicles, particularly electric two-wheelers, three-wheelers, and e-rickshaws. It is designed to provide substantial subsidies and financial incentives to buyers, making electric vehicles more affordable.
This program is an integral part of India’s commitment to sustainable transportation, and it will not only benefit individual buyers but also contribute to the nation’s goals of reducing dependence on fossil fuels and cutting down on air pollution.
Subsidy Structure for Electric Two-Wheelers
Under the PM E-DRIVE Scheme, the subsidy for electric two-wheelers is structured based on the battery power of the vehicle. The government has fixed the subsidy at Rs 5,000 per kilowatt-hour (kWh) of battery capacity for the first year. However, there is a maximum cap, meaning buyers can receive a subsidy of up to Rs 10,000 in the first year, depending on the battery size of the vehicle they purchase.
In the second year, the subsidy will be halved, and buyers will receive Rs 2,500 per kWh, with the overall benefit capped at Rs 5,000. This staggered subsidy structure is designed to gradually reduce dependency on government incentives while promoting the adoption of electric two-wheelers in the early stages.
Subsidy for E-Rickshaw Buyers
In addition to two-wheelers, the PM E-DRIVE Scheme also extends subsidies to e-rickshaw buyers. During the first year of the scheme, e rickshaw buyers can avail of a subsidy of Rs 25,000. In the second year, the subsidy will be halved to Rs 12,500. This incentive is expected to encourage the adoption of electric rickshaws, which play a crucial role in the urban and semi-urban transportation ecosystem.
Subsidies for Cargo Three-Wheelers (L5 Category)
The cargo three-wheeler (L5 category) segment is another beneficiary of the scheme. These vehicles are vital for last-mile delivery and logistics services in cities and towns. Under the PM E-DRIVE Scheme, the L5 category vehicles will receive a subsidy of Rs 50,000 in the first year. In the second year, this will reduce to Rs 25,000. This incentive is aimed at boosting the uptake of electric cargo vehicles, reducing the carbon footprint of the logistics sector.
Eligibility and the Application Process
To avail of the subsidies under the PM E-DRIVE Scheme, buyers must follow a simple and transparent application process. The scheme requires:
- Aadhaar-authenticated e-voucher: The voucher will be issued through the PM E-DRIVE portal, and it must be signed by both the buyer and the dealer.
- Selfie upload: The buyer will also need to upload a selfie as part of the verification process to ensure authenticity.
The government has taken steps to make the process hassle-free and efficient, ensuring that buyers can quickly avail of the benefits without unnecessary delays.
Impact of the PM E-DRIVE Scheme on Electric Vehicle Sales
The PM E-DRIVE Scheme is expected to have a significant impact on the growth of the electric vehicle market in India. According to the Union Heavy Industries Minister, the scheme is projected to support the purchase of:
- 24.79 lakh electric two-wheelers (e-2Ws)
- 3.16 lakh electric three-wheelers (e-3Ws)
- 14,028 electric buses (e-buses)
With these numbers, the government is targeting to reach 10% penetration in electric two-wheelers and 15% in three-wheelers in terms of annual new vehicle sales. This ambitious target aligns with the broader goal of making electric mobility mainstream in India.
PM-eBus Sewa-Payment Security Mechanism (PSM)
The PM E-DRIVE Scheme isn’t limited to just two-wheelers and three-wheelers. The government also announced the PM-eBus Sewa-Payment Security Mechanism (PSM), which focuses on the deployment of electric buses.
Under this scheme, the government has made provisions to ensure payments to electric bus operators. This includes a massive outlay of Rs 3,435 crore, aimed at supporting 38,000 electric buses. These buses will play a critical role in greening India’s public transportation network.
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Government’s Investment in Electric Mobility
In total, the government has committed Rs 10,900 crore to the PM E-DRIVE Scheme over a period of two years, along with Rs 3,435 crore for the PM-eBus Sewa-Payment Security Mechanism. This investment underscores the government’s commitment to reducing carbon emissions, improving air quality, and promoting the use of renewable energy in the transportation sector.
The launch of the PM E-DRIVE Scheme is a milestone in India’s journey towards a sustainable and eco-friendly transportation system. By providing substantial subsidies to buyers of electric two-wheelers, e-rickshaws, and cargo three-wheelers, the government is making it easier for people to switch to electric vehicles. This will not only save costs for the buyers but also reduce the country’s dependence on fossil fuels and help combat pollution.