Govt. Extends PM E-DRIVE Scheme Till MArch 2028, Govt Halves e2W Subsidy To Rs 5K
The maximum ex-factory price for e-two wheelers to avail the incentive is Rs 1.5 lakh, with a total fund support of Rs 2,767 crore from the Ministry of Heavy Industries
New Delhi: The Centre has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme for electric two-wheelers till March 31, 2028, and the incentives for the segment have been halved to Rs 2,500 per kWh from Rs 5,000 per kWh earlier.
The PM E-DRIVE scheme, with an outlay of Rs 11,900 crore, is being implemented from April 1, 2024 till March 31, 2028, for faster adoption of electric vehicles (EVs), setting up of charging infrastructure and development of EV manufacturing ecosystem in the country.
A notification issued by the ministry of heavy industries said that registered electric two-wheelers can avail an incentive of Rs 2,500 per kWh, capped at Rs 5,000 per vehicle, for the period between April 1, 2025, and March 31, 2028. “In comparison, for FY 2024-25, electric two-wheelers were eligible to avail an incentive of Rs 5,000/ kWh, capped at Rs 10,000 per vehicle,” the ministry said.
The maximum ex-factory price for e-two wheelers to avail the incentive is Rs 1.5 lakh, with a total fund support of Rs 2,767 crore from the Ministry of Heavy Industries. “The proposed incentive per kWh is, however, subject to review as per the reduction in vehicle cost and would be notified accordingly from time to time,” it said.
“The incentive shall be limited to as specified above or 15 percent of the ex-factory price of e-2W/e-3W, whichever is lower. This is a fund-limited scheme. Total payout under the scheme shall be limited to the scheme outlay of Rs 11,900 crore. In case the funds for the scheme or its relevant sub-components are exhausted prior to the terminal date of the scheme (i.e; 31 March 2028), then the scheme or its relevant sub-components will be closed accordingly and no further claims will be entertained,” it said.
