The Union Cabinet has launched a new initiative called the PM Electric Drive Revolution In Innovative Vehicle Enhancement (PM E-DRIVE) scheme. With a budget of ₹10,900 crore over the next two years, this scheme aims to increase the use of electric vehicles (EVs) in India. This new plan will replace the old FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) program, which has been around for nine years.
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What is the PM E-DRIVE Scheme?
The PM E-DRIVE scheme is designed to encourage people to use electric two-wheelers, three-wheelers, and buses. Unlike the FAME program, it does not offer subsidies for electric or hybrid cars. Instead, it focuses on vehicles that are more affordable and can help reduce pollution in cities.
Key Features of the PM E-DRIVE Scheme
Subsidies and Incentives: The scheme sets aside ₹3,679 crore to provide financial incentives for buying electric two-wheelers, three-wheelers, e-ambulances, and e-trucks. This will help support the purchase of 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 electric buses.
E-Vouchers: To make it easier to get these incentives, the scheme introduces e-vouchers. These vouchers will be generated when you buy an EV and will be linked to your Aadhaar number. You will receive the e-voucher on your mobile phone, which you can show to dealers to get the discount.
Electric Buses: A large part of the budget, ₹4,391 crore, is dedicated to buying electric buses. These buses will be used in nine major cities with populations over 40 lakh, including Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune, and Hyderabad. The scheme also supports electric bus services between cities and states.
E-Ambulances: The scheme allocates ₹500 crore for electric ambulances. These eco-friendly ambulances will provide a comfortable and sustainable way to transport patients.
Charging Infrastructure: To address concerns about running out of battery, the scheme plans to install 88,500 electric vehicle chargers. This includes 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for electric buses, and 48,400 fast chargers for electric two-wheelers and three-wheelers.
The UnionCabinet, under the leadership of Hon'ble Prime Minister Shri Narendra Modi ji has approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (#PM E-DRIVE) Scheme with Rs 10,900 Crore outlay over 2 years.
— Dr.L.Murugan (@Murugan_MoS) September 11, 2024
➔ The scheme introduces e-vouchers, making the… pic.twitter.com/95RMlirYEw
Benefits for the Environment and Economy
The PM E-DRIVE scheme is expected to have a positive impact on both the environment and the economy. By promoting the use of electric vehicles, the scheme aims to reduce India’s reliance on fossil fuels and cut down on greenhouse gas emissions. This aligns with India’s commitment to the Paris Agreement and its goal of achieving net-zero carbon emissions by 2070.
Economically, the scheme is likely to create many job opportunities in the EV manufacturing and servicing sectors. The increased demand for electric vehicles will also boost related industries, such as battery manufacturing and charging infrastructure development.
Challenges and Future Steps
While the PM E-DRIVE scheme is a great step forward, it does face some challenges. One major concern is the lack of subsidies for electric cars, which might slow down their adoption among the middle and upper-middle classes. Additionally, the success of the scheme will depend on how quickly and efficiently the proposed initiatives, especially the development of charging infrastructure, are implemented.
Another challenge is raising public awareness about the benefits of electric vehicles. The government will need to invest in campaigns to educate people about the environmental and economic advantages of switching to electric mobility.
Our Opinion
The PM E-DRIVE scheme is a bold and ambitious effort by the Indian government to promote sustainable transportation. By focusing on electric two-wheelers, three-wheelers, and buses, the scheme aims to make electric mobility more accessible to everyone. With a substantial budget and a clear plan of action, the PM E-DRIVE scheme has the potential to transform India’s transportation landscape and pave the way for a greener, cleaner future.
As India moves towards a future powered by electric vehicles, the success of the PM E-DRIVE scheme will depend on the collective efforts of the government, industry stakeholders, and the public. Together, we can drive towards a sustainable and prosperous future for all.
