After months of speculation about the continuation of subsidy on electric vehicle purchases, the government has finally launched a new scheme called PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive). The scheme will replace the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme that ended in March.
On September 11, the Union Cabinet approved an amount of Rs 10,900 crore for the PM E-Drive scheme, which is for two-wheelers, ambulances, trucks and three-wheelers. Under this scheme, 24.79 lakh electric two-wheelers, 3.16 lakh e-three wheelers and 14,028 electric buses will get support. Apart from this, this scheme will also support to improve the charging infrastructure at 88,500 sites across the country.
Electric cars out of the scheme:
PM E-Drive, which comes under the Ministry of Heavy Industries, will be applicable for the next two years. Under this scheme, subsidy will be given on the purchase of electric two-wheelers, electric three-wheelers, electric trucks and buses as well as electric ambulances. However, electric cars are excluded from this scheme.
The government says a subsidy of Rs 3,679 crore has been provided to promote electric two-wheelers, three-wheelers, electric ambulances, electric trucks and other electric vehicles. The scheme also provides for the purchase of 14,028 electric buses by state transport units and other public transport agencies, for which Rs 4,391 crore has been set aside.
The government said, “The demand for electric buses in nine cities with a population of more than 40 lakh – Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune and Hyderabad – will be aggregated by CESL. Intercity and interstate electric buses will also be supported after consultation with the states.”
Currently, the adoption of electric vehicles in India is progressing at a slow pace. In the last financial year, two-wheelers accounted for 56% of electric vehicle sales, while three-wheelers accounted for 38%. Charging infrastructure is a major reason behind the slow sales of electric vehicles. Most people wonder if their vehicle may stop working due to lack of charging infrastructure for long distance travel.
A huge amount will be spent on charging infrastructure:
Under the PM E-Drive scheme, not only will subsidy be given on electric vehicles but a huge amount will also be spent to improve the charging infrastructure. Under this scheme, 22,100 fast chargers will be installed for electric four-wheelers for which a plan is to spend Rs 2,000 crore. Apart from this, it has been proposed to install 1,800 fast chargers for electric buses and 48,400 fast chargers for electric two-wheelers and three-wheelers.
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