Electric two-wheelers to get ₹10,000 cheaper: Govt launches new PM ‘E-Drive Scheme’ with ₹50k subsidy for three-wheelers
The central government has approved a new subsidy scheme, the ‘E-Drive Scheme,’ to promote electric vehicles. This scheme will be in place for two years and will reduce the cost of electric two-wheelers by up to ₹10,000.
Reduction in Prices for E-Bikes and E-Scooters
Central Heavy Industries Minister H.D. Kumaraswamy provided this information on Thursday. Speaking at the SIAM event, he stated that the new scheme will reduce the price of e-bikes and e-scooters by up to ₹10,000. At the same time, the cost of electric three-wheelers will be reduced by up to ₹50,000.
Approval for PM E-Drive Scheme
The central cabinet has approved the PM E-Drive Scheme with a budget of ₹10,900 crore over two years for battery-operated two-wheelers, ambulances, trucks, and three-wheelers. Under the PM E-Drive, 100% support will be provided for charging infrastructure at 88,500 sites.
Subsidy Amount for E-Buses Not Fixed
Central Minister Kumaraswamy mentioned that the subsidy amount for electric buses has not yet been determined. He noted that the target is to achieve 10% EV penetration in the two-wheeler segment and 15% EV penetration in the three-wheeler segment by the end of the scheme.
Subsidy is available under the new scheme
| Vehicle type | quantity | Subsidy (per kWh) | total cost |
| Electric two-wheeler (e2w) | 24.79 lakhs | First year – ₹5000 (Total ₹10,000)2nd Year – ₹2500 (Total ₹10,000) | ₹1,772 crore |
| Electric Three-Wheelers (e3w) | 3.16 lakhs | First year – ₹50,000Second year – ₹25,000 | ₹907 crore |
| Electric buses | has been kept at 14,028 | The amount is not fixed | ₹4,391 crore |
| Hybrid Ambulance | not ok | The amount is not fixed | ₹500 crore |
Exclusion of Electric Cars and Hybrid Vehicles
The central minister stated that the PM E-Drive Scheme does not include electric cars and hybrid vehicles. Electric cars already benefit from a lower GST slab of 5%. Additionally, benefits are available under the Auto PLI Scheme.
Aadhaar-Verified E-Vouchers to be Issued
Under the scheme, the Ministry of Heavy Industries will offer e-vouchers for EV buyers. Aadhaar-verified e-vouchers will be generated for buyers on the scheme portal when purchasing a vehicle. This will ensure that there are no discrepancies in providing subsidies from the dealership.
Focus on Charging Infrastructure
The government’s focus is on strengthening the charging infrastructure for electric vehicles in India. Therefore, under the scheme, more than 18% of the total expenditure is allocated for charging infrastructure. The plan includes installing 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for e-buses, and 48,400 fast chargers for electric two-wheelers/three-wheelers.
Subsidies Under FAME-II Scheme
The PM E-Drive Scheme follows the FAME-II Scheme, which aimed at rapid adoption and production of electric vehicles. This scheme, running for five years and ending on March 31, 2024, provided subsidies to 13,21,800 EVs with a total expenditure of ₹11,500 crore.
Replacement of EMPS Scheme
The scheme was subsequently replaced by the ₹500 crore Electric Mobility Promotion Scheme (EMPS) 2024, which was valid for four months and extended until September 30, 2024.
