The primary objective of the PM E-DRIVE scheme is for faster adoption of electric vehicles (EVs), setting up of charging infrastructure and development of EV manufacturing eco-system in the country. The total outlay of the scheme is Rs 10,900 crore. The scheme was notified on September 29, 2024 and implemented w.e.f. 01.04.2024 since Electric Mobility Promotion Scheme 2024 was subsumed to PM E-DRIVE Scheme.
For electric two wheelers, incentives will be Rs 2,500/ kWh, capped at Rs 5,000 per vehicle from 01.04.2025 to 31.03.2028. Maximum Ex-factory price to avail incentive is Rs 1.5 lakh, Union Ministry of Heavy Industries said in a notification dated 10 August.
The total fund support from the Ministry will be Rs 2,767 crore.
The proposed amount of incentive per kWh is subject to review as per the reduction in vehicle cost and would be notified accordingly from time to time. The incentive shall be limited to as specified or 15 per cent of ex-factory price of two wheelers, whichever is lower, the notification said.
20,56,831 electric two wheelers have been incentivized under the scheme till 22 July and the original equipment manufacturers have been reimbursed Rs 1,505.30 crore as incentive amount.