Govt Extends PM E-Drive Scheme Till 2028

The Ministry of Heavy Industries (MHI) has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme by two years. 

The deadline extension for the PM E-DRIVE scheme, specifically for e-trucks, e-buses and testing agencies, is a result of unique challenges faced by these sectors. These challenges include high initial costs, limited charging infrastructure, range anxiety, slow charging speeds and the need for specialised skill sets for operation and maintenance.

Introduced in 2024, this scheme was initially slated to come to an end in March 2026. It has now been extended to March 31, 2028, according to a recent government notification. However, subsidies for electric two- and three-wheelers under the scheme are scheduled to conclude on March 31, 2026.

The Ministry of Heavy Industries launched PM E-DRIVE on October 1, 2024, outlaying a total budget of INR 10,900 Cr to boost electric vehicle adoption, manufacturing and charging infrastructure. It replaced the Electric Mobility Promotion Scheme 2024 (EMPS-2024) that ran from April to September 2024.

The terminal date for registered e-2W, registered e-rickshaws and e-cart and registered e-3W (L5) shall be March 31, 2026, the notification said.

The ministry further highlighted that the procurement of testing agency equipment will require more time for tendering, evaluation, procurement, and commissioning to maintain quality and safety standards across these segments.

PM E-DRIVE Powers Up EV Growth

The PM E-DRIVE scheme was launched with an aim to foster adoption of electric vehicles by offering subsidies to manufacturers, shoring up charging infrastructure and spurring local EV manufacturing capabilities.

The scheme was an extension of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) scheme. 

The notification also mentioned that if funds for the scheme or its sub-components are exhausted before the terminal date of March 31, 2028, the scheme or its relevant sub-components will be closed.

Charging Ahead: India’s Electric Mobility Push

Earlier in July, MHI rolled out an incentive scheme under the PM E-DRIVE initiative. Under the scheme, the government will offer subsidies for the deployment of 5,600 e-trucks across the country. The demand incentives will be available on the N2 and N3 categories of e-trucks, with the maximum incentive amount set at INR 9.6 Lakh.

Meanwhile, the Delhi government has reportedly extended the current electric vehicle policy till March 31, 2026, or till a revised version is notified, as the draft of the new policy will undergo public consultation, which is expected to take time.