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.