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PM E-DRIVE Scheme: Are central government or state-purchased EVs eligible?
PM E-DRIVE Scheme: Are central government or state-purchased EVs eligible? How to apply, claim subsidy; Check benefits
PM E-DRIVE Scheme Benefits: The Ministry of Heavy Industries has clarified that if the allocated funds run out before March 31, 2028, the scheme or some of its parts may be stopped earlier than planned. In such a case, no further claims will be accepted.
PM E-DRIVE Scheme Benefits: The government has revised the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme to make it simpler and more effective. Under the updated rules, subsidies for electric two-wheelers will now be available until 31 July 2026. For electric rickshaws and electric carts, the deadline has been extended to 31 March 2028. These changes are aimed at improving the distribution of incentives under the scheme, which is reportedly worth Rs 10,900 crore.
The target for e-two wheelers (e2W) has been scaled to 24.8 lakh up from 14 lakh and the goal for e-rickshaws and e-carts has been raised to over 39,000 from the previous 36,400+. The Ministry of Heavy Industries has clarified that if the allocated funds run out before March 31, 2028, the scheme or some of its parts may be stopped earlier than planned. In such a case, no further claims will be accepted.
The PM E-DRIVE scheme aims to boost public transport by promoting the use of electric vehicles (EVs) across the country. It will run from 1 October 2024 to 31 March 2026. The main goal of the scheme is to speed up EV adoption by offering purchase incentives, expanding charging infrastructure, and supporting the growth of the EV manufacturing ecosystem in India. It also helps address fuel security concerns and reduces environmental pollution.
Under the PM E-DRIVE scheme, a wide range of electric vehicles and related sectors are eligible for benefits. These include electric two-wheelers (e-2Ws) and electric three-wheelers (e-3Ws), such as registered e-carts, e-rickshaws, and L5 category. The PM E-DRIVE scheme also covers e-buses, e-ambulances, and e-trucks. It further supports the development of charging infrastructure and testing agencies under the Ministry of Heavy Industries.
The government has also set limits on the number of vehicles that can receive benefits under the PM E-DRIVE. A total of 24,79,120 registered electric two-wheelers will be supported, while the cap for e-rickshaws and e-carts has been fixed at 39,034 units.
Electric vehicles purchased by any Central or State Government department, or their agencies, will not be eligible for benefits under the PM E-DRIVE scheme. The incentives are specifically meant for private buyers and other eligible segments, ensuring that the scheme primarily supports wider public adoption of electric vehicles.
The government has also set price limits for vehicles to qualify for incentives. Electric two-wheelers must be priced up to Rs 1.5 lakh, while electric three-wheelers must cost no more than Rs 2.5 lakh at the factory level. Vehicles priced above these limits will not be eligible for subsidies.
Step 1: OEMs must first register under the PM E-DRIVE scheme to become eligible for subsidy claims.
Step 2: After registration, they can sell eligible electric vehicles and apply for reimbursement from the government.
Step 3: At the time of billing to dealers, OEMs must deduct the incentive amount from the vehicle price, including all taxes.
Step 4: Dealers calculate the final price based on the original cost before the incentive is deducted.
Step 5: Finally, dealers pass on the full incentive benefit to the customer at the time of purchase.
Step 1: The dealer generates an e-voucher with a unique ID from the PM E-DRIVE portal during EV registration at the RTO.
Step 2: The dealer completes the buyer’s Aadhaar e-KYC using face authentication and shares the e-voucher download link via SMS.
Step 3: The buyer downloads, signs, and submits the e-voucher to the dealer to claim the subsidy.
Step 4: The dealer signs the e-voucher and uploads it on the portal, and the signed copy is sent to both buyer and dealer.
Step 5: The signed e-voucher enables OEMs to claim the subsidy, while the scheme supports large-scale EV adoption and reduces fuel dependence.
The PM E-DRIVE scheme offers multiple benefits aimed at accelerating the adoption of electric vehicles in India. It makes EVs more affordable for buyers by providing subsidies, thereby encouraging individuals and businesses to shift towards cleaner mobility. The scheme supports a wide range of segments, including electric two-wheelers, three-wheelers, buses, ambulances, and trucks, which helps strengthen public and commercial transport.
Source: ZeeNews
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