PM E-DRIVE SCHEME AND PROMOTION OF ELECTRIC MOBILITY

Ministry of Heavy Industries PM E-DRIVE SCHEME AND PROMOTION OF ELECTRIC MOBILITY प्रव तथ: 28 JUL 2026 6:49PM by PIB Delhi

(a) the salient features, objectives, financial outlay and present status of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, including the categories of electric vehicles covered and the incentives provided thereunder;

(b) the details of incentives released and the number of beneficiaries, EV supported, charging stations sanctioned and e-buses deployed under the scheme since its launch, State-wise;

(c) whether the Government has undertaken any assessment of the impact of the scheme on accelerating electric vehicle adoption, reducing fossil fuel consumption, lowering vehiculare missions and promoting domestic manufacturing under the 'Make in India' initiative and if so, the details thereof;

(d) the details of measures taken to strengthen charging infrastructure, battery manufacturing and recycling ecosystems under the scheme; and

(e) whether the Government proposes to extend special incentives for Tier-II and Tier-III cities and aspirational regions to promote wider adoption of electric mobility and support the vision of Viksit Bharat @2047? ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

(a) & (b): The salient features, objectives, financial outlay and present status of PM E-DRIVE Scheme including categories of electric vehicles covered and the incentive provided thereunder are as

under: i. The primary objective of the PM E-DRIVE scheme is for faster adoption of electric vehicles

(EVs), setting up of charging infrastructure and development of EV manufacturing eco-system in the country. ii. The total outlay of the scheme is ₹10,900 crore. iii. The categories of EVs covered and applicable incentive rate is as provided in table below:

Category FY 2024-25 FY 2025-26 to FY 2027-28e-2W ₹5,000 / kWh, capped at ₹10,000 ₹2,500 / kWh, capped at ₹5,000 per per vehicle* vehicle (up to 31.07.2026)* e-3W (registered e- ₹5,000 / kWh, capped at ₹25,000 ₹2,500 / kWh, capped at ₹12,500 per rickshaws & e-carts) per vehicle* vehicle* e-3W (L5) ₹5,000 / kWh, capped at ₹50,000 ₹2,500 / kWh, capped at ₹25,000 per per vehicle (up to 07.11.2024)* vehicle (08.11.2024 to 26.12.2025)* -2- Category FY 2024-25 FY 2025-26 to FY 2027-28 * The incentive for e-2W/ e-3W is further capped at 15% of ex-factory price.

e-truck - ₹5,000 / kWh, capped at 10% of ex- factory price (excl. trailer)# # The incentive for e-truck is further capped based on the GVW of the e-truck as per

table below :

GVW >3.5 >7.5 & >12 & >18.5 & >35 &

(ton) & <=12 <=18.5 <=35 <=55 <=7.5 Max. 2.7 3.6 7.8 9.6 9.3 incentive per e- truck (₹ lakh) e- - ₹30,000 / kWh, capped at 35% of ex- ambulance factory price e-bus ₹10,000 / kWh, capped at 20% of cost of vehicle (as per prices discovered by CESL) and further capped based on length of e-bus as below:

₹35,00,000 per e-bus for length > 10metre(m) <= 12m; ₹25,00,000 per e-bus for length > 8m & <= 10m; ₹20,00,000 per e-bus for length > 6m & <= 8m.iv. Present Status: The scheme was notified on September 29, 2024 and implemented w.e.f. 01.04.2024 since EMPS 2024 has been subsumed to PM E-DRIVE Scheme and is currently being implemented upto March 31, 2028 (terminal dates for e-2W segment is 31.07.2026 and scheme for e-3W (L5) was closed on

26.12.2025. The details of EVs incentivised under the scheme are as under : (As on 22.07.2026) Category No. of EVs Incentivized Incentive Amount Reimbursed to OEMs (Rs. Crore) e-2w 20,56,831 1,505.30 e-3w: e-rickshaw/ e-cart 5,082 7.61 e-3w: L5 2,60,965 769.02 Total 23,22,878 2,281.94 Further no state-wise allocation has been done for the demand incentive category, therefore, state-wise data is not maintained for the EVs incentivised under the scheme.

An amount of Rs.2,000 crore has been allocated under the scheme for deployment of Electric Vehicle Public Charging Stations (EVPCS). As on 01.07.2026, an amount of Rs.689 crore has been approved for deployment of 6,562 chargers to 3 Oil Marketing Companies and 9 States.

Further, 14,000 e-buses have been allocated under the scheme out of which Letters of Confirmation of Demand (LoCD) have been issued to respective cities/STUs and Letters of Confirmation of Quantity

(LoCQ) have also been issued to the successful bidders for 13,800 e-buses. Surat and Hyderabad have signed concession agreement for 600 and 915 electric buses, respectively. The selected bidders are required to get their e-bus prototype approved and deploy the buses.

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(c): No such assessment has been done, however, EV penetration levels have gone up from 0.7% in FY 2019-20 to 8.2% in FY 2025-26, supported by PM E-DRIVE, FAME-II and other government schemes/policies.

Promotion of domestic manufacturing: OEMs registered under the PM E-DRIVE Scheme have localised their EV models under PM E-DRIVE scheme and have obtained certificates of compliance to Phased Manufacturing Programme (PMP) for their EV models from testing agencies of MHI.

(d): An Allocation of Rs. 2,000 crore has been made for deployment of adequate number of EVPCS on pan India basis. As on 01.07.2026, an amount of Rs.689 crore has been approved for deployment of 6,562 chargers to 3 Oil Marketing Companies and 9 States.

The Government has implemented Production Linked Incentive (PLI) scheme, ‘National Programme on Advanced Chemistry Cells (ACC) Battery Storage’ from 12th May, 2021 with a total budgetary outlay of Rs.18,100 crore for manufacturing of ACC in the country. The scheme envisages to establish a competitive ACC battery manufacturing set up in the country for 50 GWh.

Further, Ministry of Environment, Forest and Climate Change (MOEFCC) has notified Battery Waste Management Rules, 2022, dated 22nd August 2022 for environmental factors.(e): The PM E-DRIVE scheme has been implemented on pan India basis including Tier-II and Tier-III cities and aspirational regions to promote wider adoption of electric mobility and support the vision of Viksit Bharat @2047.

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