AI SummaryCentral government had launched FAME India Scheme Phase 2 in 2019 with an outlay of Rs. 10,000 crore to push electric vehicle (EV) adoption in the country. That scheme has now been replaced by a new one called PM E-Drive (Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement). Cabinet approved PM E-Drive with a total outlay of Rs. 10,900 crore, and it came into effect from October 1, 2024.
PM E-Drive is the current central scheme for electric mobility, run by the Ministry of Heavy Industries. It offers upfront demand incentives on electric two wheelers, three wheelers, e-ambulances and e-trucks, and also funds electric buses and charging infrastructure. The scheme was extended till March 31, 2028 for all segments except e-3W (L5), which closed on December 26, 2025.
What is PM E-Drive Scheme
PM E-Drive is the successor of the FAME India Scheme Phase 2. It aims to speed up the use of electric vehicles by giving upfront incentives at the time of purchase, and by building a strong charging network across the country. The scheme supports around 24.79 lakh electric two wheelers (e-2W), 3.2 lakh electric three wheelers (e-3W), 14,028 electric buses, e-ambulances and e-trucks.
Only EVs fitted with advanced batteries and registered under the Central Motor Vehicles Rules (CMVR), 1989 are eligible for the demand incentive. Vehicles bought by government departments are not covered, so that funds do not move within government bodies. The incentive is given to the buyer as a lower purchase price, and the OEM later claims it back from the Ministry of Heavy Industries.
Who is Eligible for PM E-Drive Subsidy
Eligibility depends on the vehicle category. For e-2W, both commercially registered and privately owned vehicles with advanced batteries are covered. For e-3W, only vehicles used for commercial purposes, like registered e-rickshaws or L5 category vehicles, are eligible. All EVs must be registered under CMVR and must be manufactured and registered within the scheme period.
The demand incentive is proposed at Rs. 5,000 per kWh for e-2W and e-3W registered in financial year 2024-25, and Rs. 2,500 per kWh for financial year 2025-26. The incentive is capped per vehicle or at 15% of the ex-factory price, whichever is lower. Only EVs with an ex-factory price below a set limit qualify. One person can get the incentive for only one EV of a particular category.
PM E-Drive Scheme Components
The scheme works through a few main parts. Demand incentives of about Rs. 4,674 crore are set aside for e-2Ws, e-3Ws, e-ambulances, e-trucks and other new EV categories. A separate Rs. 4,391 crore is kept for buying 14,028 electric buses by State Transport Undertakings (STUs) and public transport agencies. Charging infrastructure gets Rs. 2,000 crore, and testing agencies under the Ministry of Heavy Industries get Rs. 780 crore for upgradation.
For charging, the scheme plans to set up 22,100 fast chargers for e-4Ws, 1,800 for e-buses, and 48,400 for e-2Ws and e-3Ws. These will be placed in cities with high EV use and along select highways. A budget of Rs. 500 crore is kept for e-ambulances and another Rs. 500 crore for e-trucks. E-trucks are eligible only if the buyer holds a scrapping certificate from a MoRTH-approved vehicle scrapping center.
How to Apply for PM E-Drive Scheme
The Ministry of Heavy Industries uses an e-Voucher system to give the demand incentive to EV buyers. The process is simple and fully online.
STEP 1 - Visit the official PM E-Drive portal at https://pmedrive.heavyindustries.gov.in/ and open the scheme section.
STEP 2 - At the time of buying the EV, the portal generates an e-KYC Aadhaar FACE authenticated e-Voucher for the customer. A link to download the e-Voucher is sent to the registered mobile number.
STEP 3 - The buyer signs the e-Voucher and gives it to the dealer to get the upfront price reduction. The dealer also signs it and uploads it on the PM E-Drive portal.
STEP 4 - The signed e-Voucher is sent to the buyer and dealer through SMS. This signed voucher is needed for the OEM to claim the reimbursement of the demand incentive from the Ministry of Heavy Industries.
About FAME India Scheme Phase 1 and 2
Central govt. earlier launched the first phase of Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME India) on April 1, 2015. Phase 1 ended on March 31, 2018. Phase 2 started on April 1, 2019 with an outlay of Rs. 10,000 crore for a period of five years. Out of the total support, about 86 percent was set aside for demand incentive to create demand for electric vehicles.
FAME India Scheme 2 aimed to support 7,000 electric buses, 5 lakh electric three wheelers, 55,000 electric four wheeler passenger cars (including strong hybrid) and 10 lakh electric two wheelers. The scheme also supported the creation of EV charging infrastructure. FAME India Scheme 2 has now been replaced by the PM E-Drive scheme.
PM E-Drive Scheme Highlights
| Detail | Information |
|---|---|
| Scheme Name | PM E-Drive (Prime Minister Electric Drive Revolution for Green Vehicle Enhancement) |
| Launched By | Central Government, Ministry of Heavy Industries |
| Total Outlay | Rs. 10,900 crore |
| Started From | October 1, 2024 |
| Extended Till | March 31, 2028 (except e-3W L5) |
| Beneficiaries | Buyers of e-2W, e-3W, e-ambulances, e-trucks and e-buses |
| Official Website | pmedrive.heavyindustries.gov.in |
PM E-Drive Scheme Fund Allocation
The total fund of Rs. 10,900 crore is split across different parts of the scheme. Demand incentives get about Rs. 4,674 crore, electric buses get Rs. 4,391 crore, charging infrastructure gets Rs. 2,000 crore, testing agencies get Rs. 780 crore, and e-ambulances and e-trucks get Rs. 500 crore each.
For more details on electric vehicle models, OEMs and dealers, visit the official PM E-Drive website at https://pmedrive.heavyindustries.gov.in/. You can also check the related PM E Drive Scheme Portal page for registration and subsidy details.
WHATS THE MINIMUM AND MAXIMUM TIME PERIOD AFTER SALE OF A ELECTRIC BIKE ,DEALER OR CUSTOMER TO HAS TO APPLY FOR FAME 2 SUBSIDY