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PM E-DRIVE Yojana: Modi Government’s Big Bet! Subsidy of up to 25,000 Rupees

PM E-DRIVE Yojana: The government has approved 10,900 crore rupees for this scheme.

New DelhiSep 26, 2024 / 03:20 am

Patrika Desk

The central cabinet has recently approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme to promote the use of electric vehicles in the country. This scheme will replace the FAME scheme. Under this scheme, a program will be implemented to increase the manufacturing of electric vehicle equipment at the local level. The government has approved 10,900 crore rupees for this scheme. According to several media reports, a phased manufacturing program (PMP) will be implemented to increase the manufacturing of electric vehicle equipment in the country under the PM E-DRIVE scheme.

What is the Scheme?

Under this scheme, electric vehicle manufacturers who source equipment locally will receive financial assistance without any domestic value addition requirement. To receive the subsidy, local assembly of electric vehicle parts is required. However, suppliers can import parts. According to a senior official, the PMP will promote local electric vehicle manufacturing. Companies will have to comply with the PMP rules within six months of the scheme’s notification to receive the subsidy. Furthermore, companies receiving the subsidy will have to ensure that electric vehicles are manufactured in India.

Subsidy of up to 25,000 Rupees

According to reports, financial assistance for electric two-wheelers will be reduced to 5,000 rupees per vehicle, and for three-wheelers, the subsidy will be reduced to 25,000 rupees per vehicle from 2025-26. Another official stated that the manufacturing facility of the company supplying electric vehicle equipment will be inspected twice a year to prevent misuse of the subsidy.

News / National News / PM E-DRIVE Yojana: Modi Government’s Big Bet! Subsidy of up to 25,000 Rupees

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