NEW DELHI: HD Kumaraswamy, Union heavy industries minister, said on Wednesday that the newly approved PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-Drive) scheme is set to accelerate the adoption of electric vehicles (EVs) via substantial upfront incentives and development of crucial charging infrastructure.
“This project, which will cost Rs 10,900 crore, aims to provide essential charging infrastructure and significant upfront incentives to hasten the use of electric vehicles …Our goal is to reduce the environmental footprint, improve air quality, and build a competitive and resilient EV manufacturing industry,” said Kumaraswamy.
This statement by the central minister comes as EV penetration in the Indian automobile industry remains at low level.
The minister stated that the government will soon be launching e-vouchers for EV buyers. He had earlier said electric two-wheeler buyers can avail a maximum subsidy of up to Rs 10,000 in the first year and Rs 5,000 in the second year under the subsidy scheme for EVs. The incentives are different for three-wheelers and other segments of the auto industry.
The Cabinet last approved two major schemes with a total outlay of Rs 14,335 crore to promote use of EVs, including buses, ambulances and trucks. This would replace the Electric Mobility Promotion Scheme (EMPS), which was an extension to the FAME II scheme.
“FAME has been highly effective, with around 93% of the targeted vehicles incentivized and 92% of the allocated Rs 11,500 crore utilized. Looking ahead, we must remain committed to innovation and be confident because we will lead the global electric mobility transformation.” Kumaraswamy added.