The government on Tuesday launched the Pradhan Mantri e-Drive Yojana with an outlay of Rs 10,900 crore. It aims to accelerate the adoption of electric vehicles in India, set up charging infrastructure and develop an EV manufacturing ecosystem. The scheme will be effective from October 1, 2024 to March 31, 2026.
EMPS-2024 (Electric Mobility Promotion Scheme) being implemented for the period from April 1, 2024 to September 30, 2024 is being included under the PM e-Drive scheme.
The subsidy under the PM e-Drive scheme for electric two-wheelers has been fixed at Rs 5,000 per kWh depending on the battery power. But in the first year the total incentive will not exceed Rs 10,000. In the second year it will be halved to Rs 2,500 per kWh and the total benefit will not exceed Rs 5,000.
Union Minister made this appeal
Union Minister HD Kumaraswamy on Tuesday asked vehicle manufacturers to follow the guidelines while availing incentives under the PM E-Drive scheme launched. He also said that there should be no scope for controversy like the FAME-2 scheme.
The Heavy Industries Minister’s comment is important because in the second phase of the FAME-II (Faster Adoption and Manufacturing of Electric Vehicles) scheme, some companies were accused of violating the rules and getting financial incentives.
The FAME-II regulations allowed incentives for the production of electric vehicles using components manufactured in India. However, an investigation by the Ministry of Heavy Industries had revealed that some companies had allegedly used imported components.
The ministry conducted the investigation after receiving anonymous emails alleging that several EV manufacturers were claiming subsidies without following the phased manufacturing plan (PMP) rules to promote domestic manufacturing of electric vehicles.
Kumaraswamy said, “Finally I request our manufacturers because there are some differences between manufacturers and our ministry in the FAME 2 scheme because 2-3 manufacturers are not following the guidelines of the scheme… some differences, some disputes, in fact everyday they are giving their representations to our ministry.”
Addressing the launch of PM e-Drive, he said, “My personal request to all manufacturers, I do not want to give any scope for dispute or any differences… whatever guidelines we have put in place, please follow them.”
