PM E Drive Scheme Extended with Strategic Policy Shift

Scheme Extension and Changes

PM E Drive Scheme Extended with Strategic Policy Shift: The Government of India has extended the PM E-Drive scheme until March 2028. The programme will continue supporting electric mobility but will end subsidies for electric two-wheelers and three-wheelers on March 31, 2026. This marks a policy transition towards self-sustaining growth in these segments.

Static GK fact: The PM E-Drive scheme was launched on October 1, 2024 with a total outlay of ₹10,900 crore.

Scheme Objectives

The scheme aims to accelerate EV adoption through:

• Purchase incentives across vehicle categories
• Expansion of charging infrastructure
• Upgradation of testing facilities

Static GK fact: India’s EV policy push aligns with the National Electric Mobility Mission Plan (NEMMP) 2020 vision.

Financial Allocation

The ₹10,900 crore budget is divided as follows:

• ₹3,679 crore for demand incentives on electric two-wheelers, three-wheelers, ambulances, and trucks.
• ₹7,171 crore for electric buses, public charging stations, and testing facilities.

Targets for 2028

By 2028, the scheme targets:

• 24.79 lakh electric two-wheelers
• 3.16 lakh electric three-wheelers
• 14,028 electric buses and trucks
• 88,500 EV charging points across India

Static GK fact: India’s first public EV charging station was set up in Bangalore in 2017.

Subsidy Adjustments

Initial subsidies for two-wheelers were ₹5,000 per kWh with a cap of ₹10,000 per vehicle. These were halved to ₹2,500 per kWh from April 2025.
Electric truck subsidies, introduced in July 2025, stand at ₹5,000 per kWh or up to 10% of the ex-factory price.
Ambulance and charging station subsidy guidelines are under development.

Infrastructure Push

To address charging gaps, the scheme allocates ₹2,000 crore for:

• 22,100 fast chargers for four-wheelers
• 1,800 chargers for buses
• 48,400 chargers for two- and three-wheelers

Static GK fact: The world’s largest EV charging station is located in California, USA, with over 100 charging points.

Fund-Limited Approach

The scheme is fund-limited. If the ₹10,900 crore allocation is exhausted before March 2028, it will end early.

Policy Transition

Ending subsidies for mature segments like two-wheelers and three-wheelers reflects a shift from government support to market-driven growth. Subsidies will continue for buses, trucks, and charging stations to encourage adoption in these early-stage categories.

Static Usthadian Current Affairs Table

PM E Drive Scheme Extended with Strategic Policy Shift: