**Policy Summary: Extension of the PM EDRIVE Scheme**
**Date:** August 8, 2025
**Issuing Authority:** Ministry of Heavy Industries
**Subject:** Extension of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (EDRIVE) Scheme
**Summary:**
The Ministry of Heavy Industries has announced a two-year extension of the PM EDRIVE Scheme, originally set to conclude on March 31, 2026, extending the program's duration until March 31, 2028. This extension does not alter the original total outlay of ₹10,900 crore. While the terminal date remains March 31, 2026, for registered e2W, registered e-rickshaws/e-carts, and registered e3W L5 vehicles, the extension is specifically intended to accommodate the unique challenges and timelines associated with e-trucks, e-buses, and testing agencies. The extension allows for the completion of the post-selection process for e-buses, which have an allocation of ₹4,391 crore to deploy 14,028 units, with grant disbursements tied to milestones over 18 months that begin after March 2026. The extension also allows for the procurement of testing agency equipment to ensure quality and safety standards. The scheme operates as a fund-limited program, and payouts will be restricted to the sanctioned outlay of ₹10,900 crore. The scheme or relevant subcomponents will be closed if funds are exhausted before March 31, 2028, and no further claims will be entertained.
Key Entities Referenced
Ministry of Heavy Industries: The Indian government ministry responsible for the PM EDRIVE Scheme.
PM EDRIVE Scheme: PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme, a program to promote electric mobility in India.
Shri H.D. Kumaraswamy: Honorable Minister of Heavy Industries.
Narendra Modi: Prime Minister of India.
Make in India: A Government of India initiative to encourage domestic manufacturing.
India: The country where the PM EDRIVE scheme is being implemented.
e2W: Electric two-wheelers.
e3W L5: Electric three-wheelers of the L5 category.
Ministry of Heavy Industries
The Ministry of Heavy Industries extends the tenure
of the PM E-DRIVE Scheme by 2 years from 31
March 2026 to 31 March 2028.
Posted On: 08 AUG 2025 7:58PM by PIB Delhi
Shri H.D. Kumaraswamy, Hon’ble Minister of Heavy Industries informed that the duration of the PM Electric
Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme has been extended from two
years to four years. Originally notified on 29 September 2024 with an outlay of ₹10,900 crore for a two-year
period, the scheme will now be implemented until 31 March 2028 within the same outlay. However, the
terminal date for registered e-2W, registered e-rickshaws & e-carts, and registered e-3W (L5) remains 31
March 2026.
The Minister stated that the under the visionary leadership of our Prime Minster Shri Narendra Modi, the
country is taking rapid strides towards acceleration of e mobility in India. The PM E-DRIVE scheme enables
Make in India through its Phased Manufacturing programme.
The PM E-DRIVE Scheme aims to accelerate the adoption of electric vehicles (EVs), establish robust
charging infrastructure, and strengthen the EV manufacturing ecosystem in the country. This extension until
31 March 2028 is required for e-trucks, e-buses, and testing agencies due to their specific challenges. The e-
trucks market is still in a nascent phase. In view of this, full scale commercial production is likely to take
some more time. Likewise, e-buses, supported by a ₹4,391 crore allocation for deploying 14,028 units, require
a post-selection process starting March 2026, with grant disbursements tied to milestones over 18 months,
underscoring the need for additional time. Furthermore, the procurement of testing agency equipment will
require more time for tendering, evaluation, procurement, and commissioning to maintain quality and safety
standards across these segments.
This is a fund-limited scheme. The total payout is restricted to the sanctioned outlay of ₹10,900 crore. If funds
for the scheme or its sub-components are exhausted before the terminal date of 31 March 2028, the scheme or
its relevant sub-components will be closed, and no further claims will be entertained.
****
TPJ
(Release ID: 2154408)