changeadminMinistry of Heavy Industries informed that the duration of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme has been extended from two years to four years.
The scheme, launched in September 2024 with an outlay of ₹10,900 crore for two years, will now be implemented until the end of FY 2027-28, i.e. 31 March 2028, within the same outlay. However, the terminal date for registered e-2W, registered e-rickshaws & e-carts, and registered e-3W (L5) remains 31 March 2026.
The PM E-DRIVE Scheme aims to accelerate the adoption of electric vehicles (EVs), establish robust charging infrastructure, and strengthen the EV manufacturing ecosystem in the country. The scheme has excluded electric 4-wheelers from its scope.
This extension until 31 March 2028 is required for e-trucks, e-buses, and testing agencies due to their specific challenges. The e-trucks market is still in a nascent phase. Given this, full-scale commercial production is likely to take some more time.
Likewise, e-buses, supported by a ₹4,391 crore allocation for deploying 14,028 units, require a post-selection process starting March 2026, with grant disbursements tied to milestones over 18 months, underscoring the need for additional time.
Furthermore, 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 Scheme is a fund-limited scheme, which means the total payout is restricted to the sanctioned outlay of ₹10,900 crore. If funds for the scheme or its sub-components are exhausted before the terminal date of 31 March 2028, the scheme or its relevant sub-components will be closed, and no further claims will be entertained.
Recently, the NITI Aayog report, ‘Unlocking a $200 Billion Opportunity: Electric Vehicles in India,’ called for measures to give a stronger push to the EV transition.
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