Font size:
Print
PM E-DRIVE Scheme
Context:
Four major original equipment manufacturers (OEMs) have expressed interest in developing electric ambulances (e-ambulances) under the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme.
- The four OEMs involved are Force Motors, Maruti Suzuki, Mahindra & Mahindra, and Switch Mobility.
Overview:
- The initiative launched by the Ministry of Heavy Industry, Government of India, aimed at promoting the adoption of electric vehicles (EVs) and enhancing the associated infrastructure.
- The scheme has absorbed the Electric Mobility Promotion Scheme (EMPS) 2024, which was a bridging measure for the FAME (Faster Adoption and Manufacturing of Electric Vehicles) initiative.
The objective of the Scheme:
- The PM E-DRIVE scheme aims to bolster India’s medical sector by facilitating the electrification of approximately 50,000 ambulances.
- The scheme has allocated INR 500 crore to support this initiative.
Key Features of PM E-DRIVE Scheme:
- Financial Outlay: The scheme has a financial outlay of ₹10,900 crore over two years, up to March 31, 2026.
- Incentives for EVs: The scheme provides demand incentives for various categories of EVs, including electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), e-ambulances, e-trucks, and e-buses.
- E-Vouchers: EV buyers can avail of demand incentives through e-vouchers generated after completing Aadhaar e-KYC authentication.
- Support for Charging Infrastructure: The scheme includes provisions for establishing a network of public charging stations to boost confidence among EV users.
- Upgradation of Testing Agencies: Funds have been allocated to upgrade vehicle testing agencies to equip them with new and emerging technologies.
Challenges:
- No progress has been made in the e-bus and e-truck segments of the PM E-DRIVE Scheme. For electric buses, no incentives have been disbursed yet, as CESL (the tendering agency) is still consolidating demand from states.
- Incentives for electric trucks are expected to be lower than those for e-buses, with subsidies for e-buses reaching up to ₹31 lakh.
Future Prospects:
- The involvement of these OEMs marks a crucial step towards a greener and more efficient healthcare system.
- As the guidelines are finalised and the scheme is implemented, the production of e-ambulances is anticipated to increase, contributing to reduced carbon emissions and improved healthcare logistics.
Progress of the PM E-DRIVE Scheme:
- The scheme has achieved around 67% of its target for electric two- and three-wheelers (e-2Ws and e-3Ws). As of December 17, 792,557 vehicles had been supported out of the target of 1.18 million.
- The e-3W category has surpassed its target, achieving a success rate higher than expected. Specifically, 83,087 L5 (cargo three-wheelers) vehicles were sold, exceeding the FY25 target of 80,546 vehicles.
- The subsidy for e-2Ws and e-3Ws was reduced from ₹50,000 per vehicle to ₹25,000, as per industry requests, and continues to be extended under the scheme.
