Context:
Recently, the Union Cabinet approved the proposal of the Ministry of Heavy Industries (MHI)’s ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement’ (PM E-DRIVE) Scheme.
More on the News:
- The scheme, designed to accelerate electric mobility, has a budget allocation of Rs. 10,900 crore over the next two years, promoting green transportation solutions across India.
- PM E-DRIVE, will replace the existing FAME programme that ran for nine years till March.
- The scheme has no subsidies for electric cars and hybrid cars contrary to expectations.
- The PM E-DRIVE Scheme allocates Rs. 3,679 crore to incentivize the purchase of electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), e-ambulances, e-trucks, and emerging electric vehicles (EVs).
- Over 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 electric buses are expected to benefit from the scheme, driving the shift towards a cleaner, more sustainable future.
FAME programme
- FAME stands for Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India.
- It is a government-backed initiative aimed at promoting the adoption and manufacturing of electric and hybrid vehicles in India.
- The scheme provides incentives and subsidies to both buyers and manufacturers of electric vehicles, with the goal of reducing dependence on fossil fuels and promoting cleaner, more sustainable transportation.
- The scheme includes hybrid and electric technologies such as mild hybrid, strong hybrid, plug-in hybrid, and battery electric vehicles.
Key Features of the PM E-DRIVE Scheme:
e-Vouchers:
- Introduction of Aadhaar-authenticated e-vouchers to simplify the process of purchasing electric vehicles (EVs).
- Buyers will receive e-vouchers through the scheme’s portal, allowing them to claim demand incentives easily.
E-Ambulances:
- Allocation of Rs. 500 crore for deploying electric ambulances.
- Aims to integrate EV technology into the healthcare sector, enhancing patient transport with greener alternatives.
- Ministry of Health and family welfare (MoHFW), in collaboration with the Ministry of Road Transport and Highways (MoRTH), will establish safety and performance standards.
E-Trucks & Vehicle Scrapping:
- Rs. 500 crore set aside for incentivizing electric trucks to reduce pollution from heavy vehicles.
- Additional incentives will be provided for scrapping old trucks following MoRTH’s Vehicle Scrapping Scheme guidelines.
Public Transport & E-Buses:
- Rs. 4,391 crore allocated for the procurement of over 14,000 electric buses in nine major cities like Delhi, Mumbai, and Bengaluru.
- Promotes eco-friendly public transport by replacing old, polluting buses with electric ones.
- Demand aggregation will be managed by Convergence Energy Services Limited (CESL), prioritizing states and cities scrapping older buses.
Charging Infrastructure:
- Rs. 2,000 crore designated for installing over 70,000 fast chargers for various types of EVs across high-penetration cities and key highways.
- 22,100 fast chargers for four-wheelers, 1,800 for e-buses, and 48,400 for two and three-wheelers.
- Focuses on addressing range anxiety and creating a robust charging network.
Upgraded Testing Infrastructure:
- Rs. 780 crore allocated to modernize vehicle testing facilities to evaluate new and emerging EV technologies.
- Ensures India’s EV sector remains competitive and supports research and development in green mobility.
Significance:
- The scheme is expected to improve air quality and reduce greenhouse gas emissions by promoting sustainable transportation.
- Encourages domestic EV manufacturing under the Phased Manufacturing Programme (PMP), supporting the Aatmanirbhar Bharat initiative.
- The scheme will create employment opportunities in the EV supply chain and charging infrastructure, contributing to a cleaner, more sustainable future for India.