**Executive Summary:**
The Ministry of Heavy Industries addresses questions regarding the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme, which supports India's transition to electric vehicles (EVs). The scheme, with a total outlay of Rs. 10,900 crore, provides demand incentives, supports charging infrastructure development, and promotes domestic EV manufacturing. The scheme's tenure has been extended until March 31, 2028.
**Key Points / Main Content:**
* **PM EDRIVE Scheme:**
* Notified on September 29, 2024, with a total budgetary outlay of Rs. 10,900 crore.
* Extended on August 7, 2025, to be valid until March 31, 2028.
* Aims to support over 28 lakh EVs through demand incentives for e2Ws, e3Ws, etrucks, and eambulances.
* Provides upfront reduction in EV purchase price, reimbursed to OEMs (EV manufacturers) by the government.
* Allocates Rs. 4,391 crore for deploying 14,028 ebuses.
* Allocates Rs. 2,000 crore for establishing public EV charging infrastructure.
* Allocates Rs. 780 crore for upgrading testing agencies.
* Grants for ebuses are provided to State city transport undertakings (STUs) based on operational expenditure (OPEX) or Gross Cost Contract (GCC) models.
* Phased Manufacturing Programme (PMP) compliance under PM EDRIVE promotes domestic manufacturing of EV components.
* **Charging Infrastructure:**
* Ministry of Power issued "Guidelines for installation and operation of Electric Vehicle Charging Infrastructure 2024".
* Setting up EV charging stations (EVCS) is an unlicensed activity.
* PM EDRIVE allocates Rs. 2,000 crore for public EVCS on a pan-India basis.
* **Domestic Manufacturing Promotion:**
* Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry (PLI Auto): Approved on September 15, 2021, with a budgetary outlay of Rs. 25,938 crore to enhance manufacturing of Advanced Automotive Technology (AAT) products, including EVs and EV components, with a minimum 50% Domestic Value Addition (DVA).
* Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC): Approved on May 12, 2021, with a budgetary outlay of Rs. 18,100 crore for manufacturing ACCs.
* Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI): Notified on March 15, 2024, to promote electric car manufacturing, requiring a minimum investment of Rs. 4,150 crore and achieving DVA of 25% by the end of the third year and 50% by the end of the fifth year.
**Impact Analysis**
**EV Buyers:**
* *Impact:* Reduced upfront purchase price of EVs through demand incentives.
* *Action Required:* Avail of the reduced purchase price at the time of buying eligible EVs.
**EV Manufacturers (OEMs):**
* *Impact:* Reimbursement of the demand incentive amount from the government. Benefit from PMP Mandate.
* *Action Required:* Comply with PMP and localization requirements to get benefits.
**State City Transport Undertakings (STUs):**
* *Impact:* Grant for operating ebuses on OPEX or GCC models.
* *Action Required:* Operate ebuses under the OPEX or GCC model to avail of the grant.
**Private Entities:**
* *Impact:* Can freely set up EV charging stations across India without a license.
* *Action Required:* Establish EVCS across India to improve charging infrastructure.
**Automobile and Auto Component Manufacturers:**
* *Impact:* Financial incentives to boost domestic manufacturing of AAT products, including EVs and EV components.
* *Action Required:* Invest in manufacturing AAT products to avail of incentives.
**Advanced Chemistry Cell (ACC) Manufacturers:**
* *Impact:* Financial incentives to boost domestic manufacturing of ACCs.
* *Action Required:* Invest in manufacturing ACCs to avail of incentives.
**Electric Passenger Car Manufacturers:**
* *Impact:* Incentives to promote manufacturing of electric cars in India.
* *Action Required:* Invest a minimum of Rs. 4,150 crore and achieve minimum DVA targets to avail of the scheme's benefits.
Key Entities Referenced
PM Electric Drive Revolution in Innovative Vehicle Enhancement PM EDRIVE: A scheme by the Government of India to promote the adoption of electric vehicles in India, notified on 29th September 2024 with a total budgetary outlay of Rs.10,900 crore.
Aatmanirbhar Bharat: An initiative by the Government of India to promote self-reliance and domestic manufacturing.
Ministry of Heavy Industries MHI: The government ministry responsible for the PM EDRIVE scheme and other related initiatives.
Electric Vehicle Charging Infrastructure 2024: Guidelines issued by the Ministry of Power for the installation and operation of electric vehicle charging infrastructure.
Production Linked Incentive Scheme for Automobile and Auto Component Industry PLI Auto: A scheme approved on 15th September, 2021, for enhancing India's manufacturing capabilities for Advanced Automotive Technology AAT products with a budgetary outlay of Rs.25,938 crore.
Production Linked Incentive Scheme for Advanced Chemistry Cell ACC: A scheme approved on 12th May, 2021, for manufacturing of ACC in the country with a budgetary outlay of Rs.18,100 crore.
Scheme to Promote Manufacturing of Electric Passenger Cars in India SPMEPCI: A scheme notified on 15th March, 2024 to promote the manufacturing of electric cars in India.
Ministry of Power: The government ministry that issued guidelines for electric vehicle charging infrastructure.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 3750
ANSWERED ON 12.08.2025
ACCELERATING EV ADOPTION AND INFRASTRUCTURE DEVELOPMENT
3750. SHRI DUSHYANT SINGH:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) the details of the manner in which new PM Electric Drive Revolution in Innovative Vehicle
Enhancement (PM E-DRIVE) scheme contributes to India's transition to electric vehicles (EVs);
(b) the manner in which the Government will incentivize the demand for electric vehicles in
India;
(c) whether any upfront incentives and subsidies are provided to boost the adoption of e-
2wheelers, e-3 wheelers, e-buses, e-trucks and other emerging EV categories including the
details thereof;
(d) whether the Government is planning to facilitate the development of charging infrastructure
and support the establishment of a robust EV manufacturing ecosystem in India;
(e) whether any specific funding provisions will be made for electric buses, charging stations
and testing facilities under the scheme; and
(f) under the Aatmanirbhar Bharat initiative, the manner in which the Government promotes
domestic manufacturing of electric vehicles and related components including the details
thereof?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a) to (c) & (e): The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)
Scheme was notified on 29th September, 2024, with a total budgetary outlay of Rs.10,900 crore. The
tenure of the scheme has been extended on 07.08.2025 till 31.03.2028. PM E-DRIVE is contributing to
India’s transition to electric vehicles (EVs) in the country. The scheme aims to supports more than 28
lakh EVs by providing demand incentive for e-2Ws, e-3Ws, e-trucks and e-ambulances. The demand
incentive is provided to buyers of EVs in the form of an upfront reduction in the purchase price of EVs,
which is later reimbursed to the original equipment manufacturers (OEMs, i.e., EV manufacturers) by
the Government of India.
Under the PM E-DRIVE, an allocation of Rs.4,391 crore has been made for supporting
deployment of 14,028 e-buses, Rs. 2,000 crore for setting up of adequate electric vehicles public charging
infrastructure and Rs.780 crore for upgradation of testing agencies identified under the scheme.
For e-buses, the grant is provided to the State/ city transport undertakings (STUs) for operating
e-buses on operational expenditure (OPEX) model or Gross Cost Contract (GCC) model.-2-
(d): The Ministry of Power has issued “Guidelines for installation and operation of Electric Vehicle
Charging Infrastructure 2024” which outline the standards and protocols to create connected and
interoperable EV charging infrastructure network including Battery Swapping /Charging Stations.
Setting up of EV charging stations (EVCS) is an unlicensed activity and private entities are free
to setup EVCS across India. PM E-DRIVE scheme has an allocation of Rs. 2,000 crore for setting up of
public EVCS/ charging infrastructure on pan India basis.
The Phased Manufacturing Programme (PMP) mandate for localisation of EV components under
PM E-DRIVE along with other schemes of MHI such as PLI-Auto, PLI-ACC and Scheme to Promote
Manufacturing of Electric Passenger Cars in India (SPMEPCI), support the establishment of robust EV
manufacturing ecosystem in India.
(f): The following schemes are being implemented by Ministry of Heavy Industries (MHI) to
promote domestic manufacturing of electric vehicles and related components thereby aligning with the
“Aatmanirbhar Bharat” initiative of Govt. of India:
i. PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme
: The Phased Manufacturing Programme (PMP) compliance under this scheme promotes domestic
manufacturing of EV components in the country.
ii. Production Linked Incentive Scheme for Automobile and Auto Component Industry (PLI-
Auto): Government on 15th September, 2021 approved PLI-Auto Scheme, for enhancing India's
manufacturing capabilities for Advanced Automotive Technology (AAT) products with a budgetary
outlay of Rs.25,938 crore. The scheme provides financial incentives to boost domestic manufacturing of
AAT products (including EVs and EV components) with minimum 50% Domestic Value Addition
(DVA) and attract investments in the automotive manufacturing value chain.
iii. Production Linked Incentive Scheme for Advanced Chemistry Cell (ACC): The
Government on 12th May, 2021 approved PLI Scheme for manufacturing of ACC in the country with a
budgetary outlay of Rs.18,100 crore.
iv. Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI):
This scheme notified on 15th March, 2024 aims to promote the manufacturing of electric cars in India.
This requires applicants to invest a minimum of Rs.4,150 crore and to achieve a minimum Domestic
Value Addition (DVA) of 25% at the end of the third year and DVA of 50% at the end of the fifth year.
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