The Union Cabinet has approved the PM E-drive Scheme with an outlay of Rs 10,900 crore for two years in a bid to boost the adoption of electric vehicles (EVs) in India. This is as per a report by Moneycontrol.
As per the new scheme, subsidies worth Rs 3,679 crore will reportedly be offered to incentivise the adoption of battery-driven two and three-wheelers, ambulances, trucks and other emerging electric vehicles (EVs).
Information and Broadcasting Minister Ashwini Vaishnaw reportedly said that under the PM Electric Drive Resolution in Innovative Vehicle Enhancement (PME-DRIVE) scheme, 100 per cent support will be given for charging infrastructure at 88,500 sites. The investment will be over and above the PLI schemes for auto and auto component sectors, the minister further added.
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In a major breakdown of the allotment of the scheme as per the government's statement, subsidies/demand incentives worth Rs 3,679 crore have been provided to incentivize e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs. The scheme will reportedly support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.
A sum of Rs 4,391 crore has been reportedly allocated for getting 14,028 e-buses by state transport undertakings and public transport agencies. There is also the PM-eBus Sewa Payment Security Mechanism of Rs 3,435 for the battery-run bus market. A Rs 500 crore has reportedly been allocated for the deployment of e-ambulances and a sum of Rs 500 crore has been earmarked for incentivising adoption of e-trucks.
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The minister reportedly said that the allocation of e-ambulances is a new initiative of the government for comfortable patient transport. However, he clarified that the newly introduced policy doesn't provide any incentives for electric cars and will also not consider hybrid vehicles.
The PM E-Drive Scheme replaces the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) Scheme. The FAME scheme was launched in April 2015 and ran for nine years in two different editions.
During the second edition of the scheme, which was valid until March 31, 2024, the government reportedly subsidised 13,21,800 EVS with a total outlay of Rs 11,500 crore.
Electric Mobility Promotion Scheme 2024 of Rs 500 crore, later replaced the FAME II scheme.
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