Govt approves Rs 10,900 crore PM E-Drive scheme to push electric mobility

New Delhi: The Union Cabinet on Wednesday approved two major projects- PM E-DRIVE Scheme and PSM with an outlay of Rs 14,335 crore to promote electric mobility.

The two schemes are: PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme with an outlay of Rs 10,900 crore over a period of two years, and PM-eBus Sewa-Payment Security Mechanism (PSM) scheme with a budget of Rs 3,435 crore.

The PM E-DRIVE will replace the flagship Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) Scheme launched in April 2015. The scheme ran for nine years till March.

The newly approved scheme will support 24.79 lakh electric two-wheelers, 3.16 lakh e-three wheelers, and 14,028 e-buses. It will also support 88,500 charging sites, Information and Broadcasting Minister Ashwini Vaishnaw told reporters after the meeting.

The new scheme offers subsidies/demand incentives worth Rs 3,679 crore to incentivise adoption of electric two-wheelers, electric three-wheelers, e-ambulances, e-trucks and other emerging electric vehicles (EVs).

Around Rs.500 crore will be provided for the deployment of e-ambulances. A sum of Rs.4,391 crore earmarked for procurement of 14,028 e-buses by state public transport agencies to nine cities with more than 40 lakh population namely Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune and Hyderabad. Intercity and Interstate e-buses will also be supported in consultation with states. A sum of Rs 500 crore has been provided for incentivising adoption of e-trucks.

The cabinet approved “PM-eBus Sewa-Payment Security Mechanism (PSM) scheme” for procurement and operation of e-buses by Public Transport Authorities (PTAs) with an outlay of Rs. 3,435.33 crore.

The PSM scheme will support deployment of more than 38,000 electric buses (e-Buses) from FY 2024-25 to FY 2028-29. The scheme will support the operation of e-buses for a period of up to 12 years from the date of deployment, said the statemen