Executive Summary:
The Ministry of Heavy Industries announced the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM eDRIVE) Scheme on 29.09.2024, with an outlay of Rs. 10,900 crore for two years. The scheme provides upfront subsidies to EV buyers and incentivizes domestic manufacturing through Production Linked Incentive (PLI) schemes. The government will monitor the effectiveness of these incentives.
Key Points / Main Content:
PM eDRIVE Scheme:
* Notified on 29.09.2024 with an outlay of Rs. 10,900 crore for two years.
* Focuses on providing upfront subsidies to buyers of electric vehicles (EVs).
* Allocations:
* Rs. 3,679 crore for subsidies to buyers of e2Ws, e3Ws, e-ambulances, and e-trucks.
* e2Ws: Rs. 1,772 crore (24.79 lakh vehicles)
* e3Ws: Rs. 907 crore (3.15 lakh vehicles)
* e-ambulances: Rs. 500 crore
* e-trucks: Rs. 500 crore (5,643 vehicles)
* Rs. 4,391 crore for 14,028 e-buses.
* Rs. 2,000 crore for installation of EV charging stations.
* Rs. 780 crore for upgrading testing agencies.
* Requires compliance with Phased Manufacturing Programme (PMP), mandating indigenization of manufacturing.
* Implemented on a pan-India basis.
Production Linked Incentive (PLI) Schemes:
* PLI Auto provides incentives on incremental sales of Advanced Automotive Technology (AAT) vehicles and components.
* Champion OEM category: 13% to 18% incentive on AAT vehicle sales.
* Component Champion category: 8% to 13% incentive on AAT component sales, with an additional 5% incentive for battery electric vehicle components.
* Mandates minimum Domestic Value Addition (DVA) of 50% for availing incentives.
* PLI Advance Chemistry Cell Scheme incentivizes production of cells used in EV batteries.
Monitoring:
* The government will monitor the effectiveness and implementation of the PM eDRIVE and PLI schemes.
Sales in Sidhi Lok Sabha Constituency:
* Under PM eDRIVE, 299 e2Ws and 16 e3Ws have been sold in Sidhi, totaling 315 vehicles (including Shahdol, Singrauli, and Umaria).
Impact Analysis:
Consumers:
* Impact: Reduced upfront cost of EVs through subsidies.
* Action Required: Avail of subsidies at the time of purchase.
Manufacturers:
* Impact: Incentives for domestic manufacturing of EVs and related components, promoting indigenization.
* Action Required: Comply with Phased Manufacturing Programme (PMP) and Domestic Value Addition (DVA) requirements to avail of PLI scheme benefits.
Charging Station Operators:
* Impact: Opportunity to install EV charging stations with government support.
* Action Required: Participate in the scheme for installation of EV charging stations.
Testing Agencies:
* Impact: Upgradation of facilities through government funding.
* Action Required: Utilize allocated funds to upgrade testing capabilities.
Key Entities Referenced
PM Electric Drive Revolution in Innovative Vehicle Enhancement: A scheme (PM eDRIVE) notified by the Government of India on 29.09.2024 with an outlay of Rs.10,900 crore for a period of two years to promote electric vehicles.
Production Linked Incentive Scheme for Automobile and Auto Components: A scheme (PLI Auto) that provides incentives for the manufacturing of Advanced Automotive Technology (AAT) vehicles and components in India.
Advanced Automotive Technology: Technology used in vehicles that qualify for incentives under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components (PLI Auto).
Production Linked Incentive Advance Chemistry Cell Scheme: A scheme incentivizing the domestic production of cells used in batteries of electric vehicles.
Sidhi Lok Sabha constituency: A Lok Sabha constituency where the PM eDRIVE scheme is being implemented and where electric vehicles have been sold under the scheme. It is located in Madhya Pradesh.
Madhya Pradesh: A state in India, where Sidhi Lok Sabha constituency is located.
Champion OEM: A category of applicants under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components (PLI Auto) that receive incentives on incremental sales of Advanced Automotive Technology (AAT) vehicles.
Component Champion: A category of applicants under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components (PLI Auto) that receive incentives on sales of Advanced Automotive Technology (AAT) components.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 424
ANSWERED ON 22.07.2025
INCENTIVES UNDER PM e-DRIVE SCHEME
†424. SMT. HIMADRI SINGH:
SHRI P C MOHAN:
SMT. POONAMBEN HEMATBHAI MAADAM:
DR. RAJESH MISHRA:
SHRI BHOJRAJ NAG:
SHRI BALABHADRA MAJHI:
DR. HEMANT VISHNU SAVARA:
SMT. KAMALJEET SEHRAWAT:
SHRI PARBHUBHAI NAGARBHAI VASAVA:
SHRI PRAVEEN PATEL:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) the various steps taken so far by the Government to provide subsidies for electric vehicles
under the PM e-Drive scheme;
(b) the manner in which the Production Linked Incentive (PLI) Schemes are proving helpful
in promoting Electric Vehicle (EV) manufacturing in India;
(c) whether the Government proposes to monitor the effectiveness of the said incentives
during tenure of the scheme;
(d) if so, the details thereof; and
(e) whether subsidy has been provided for electric vehicles in the Sidhi Lok Sabha
Constituency under the PM e-Drive scheme and if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)
Scheme, notified by Govt. of India on 29.09.2024 with an outlay of Rs.10,900 crore for a period
of two years. The details various steps taken so far by Government to provide subsidies for EVs
under the PM e-DRIVE Scheme are as under : -
(I) Consumers : The scheme focusses on providing upfront subsidies to the buyers of EVs at
the time of purchase of EVs. A total of Rs.3,679 crore has been allocated under the scheme to
provide subsidies to buyers of e-2Ws, e-3Ws, e-ambulances and e-trucks as per details provided
below:
Sl. No. Segment Total Subsidy Amount (Rs. No. of EVs
crore)
1. e-2Ws 1,772 24.79 lakh
2. e-3Ws 907 3.15 lakh
3. e-ambulances 500 -
4. e-trucks 500 5,643-2-
Further, besides the incentivization of EVs, following provisions have been made under
the PM E-DRIVE Scheme :
1. An allocation of Rs. 4,391 crore for 14,028 e-buses.
2. An allocation of Rs.2,000 crore for installation of EV charging stations
3. An allocation of Rs.780 crore for Upgradation of testing agencies
Further details are available at https://pmedrive.heavyindustries.gov.in
(II) Manufacturers : The PM E-DRIVE scheme requires compliance to Phased Manufacturing
Programme, which mandates indigenization of manufacturing. This supports resilience in
automotive supply chain in the country.
(b): The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components
(PLI Auto) provides for incentive of 13% to 18% on determined (incremental) sales of Advanced
Automotive Technology (AAT) vehicles to applicants under Champion OEM category, and
incentive of 8% to 13% on determined sales of AAT components (additional 5% incentive is
provided for AAT components of battery electric vehicles) to applicants under Component
Champion category. The scheme mandates minimum Domestic Value Addition (DVA) of 50%
for availing incentives under the scheme which promotes manufacturing in India across the
automotive supply chain.
The PLI Advance Chemistry Cell Scheme incentivises production of cells which are,
inter-alia, used in batteries of electric vehicles. The domestic production of these cells will prove
helpful in promoting EV manufacturing in India.
(c) & (d): Yes, the Government has mechanisms in place to monitor the effectiveness and
implementation of these schemes as per scheme notification and guidelines.
(e): PM e-DRIVE scheme is being implemented on a pan-India basis, including Siddhi Lok
Sabha constituency. The details of EVs sold under the scheme in Siddhi Lok Sabha constituency
are as under :
(in Nos.)
Constituency e-2W e-3W Total
Sidhi
299 16 315
(including Shahdol, Singrauli & Umaria)
******