Centre sanctions Rs 10,900 cr PM E-drive scheme for two-wheelers, ambulances, trucks

The Union Cabinet on September 11 approved a sum of Rs 10,900 crore for PM E-drive scheme, which is for two-wheelers, ambulances, trucks, and three-wheelers. The PM Electric Drive Revolution In Innovative Vehicle Enhancement (PM E-DRIVE) Scheme will support 24.79 lakh electric two-wheelers, 3.16 lakh e-three wheelers, and 14,028 e-buses. 
Under the newly sanctioned PM E-drive scheme, 100% support will be provided for charging infrastructure at 88,500 sites across the country.

The new scheme will replace the previous FAME II initiative, which subsidised 16 lakh electric vehicles. Under the new scheme, subsidies/demand incentives worth Rs 3,679 crore will be offered to incentivise adoption of electric two-wheelers, electric three-wheelers, e-ambulances, e-trucks and other emerging EVs. Another Rs 4,391 crore will be provided for the procurement of 14,028 e-buses by state transport undertakings and public transport agencies.

In addition to this, hybrid ambulances and electric trucks will also receive support under this scheme. Under the new scheme, Rs 500 crore has been earmarked for the deployment of e-ambulances  and another Rs 500 crore has been provided for incentivising adoption of e-trucks.

Furthermore, the scheme will fully fund 88,500 electric vehicle chargers. Moreover, monthly payments will be guaranteed for 38,000 electric buses operating in 169 cities.

Besides, Cabinet approves Rs 3435 crore payment security mechanism under PM e-Bus scheme, under which 38,000 e-buses in 169 cities will be promoted.

Under the scheme,

● Monthly payment will be guaranteed
● Cost of operating eBus will be less
● Maintenance cost will be less
● Pollution load will be less
● Therefore, many transport organisations are now becoming profitable using eBus
● Payment Security Mechanism will bring in more investments