PM E-Drive Scheme with Rs 10,900 Crore Outlay Launched in India, Replaces FAME II

The Union government has introduced a new scheme called PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive). The scheme replaces the second phase of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) scheme, which ended in March 2024.  

The two-year PM E-Drive scheme, launched with a total outlay of Rs 10,900 crore, aims to promote electric mobility in the country, focusing on incentivising electric two-wheelers (e-2Ws), electric three-wheelers (e-3Ws), electric trucks and buses, in addition to electric ambulances. Out of the total outlay, Rs 3,679 crore has been allocated for subsidies/demand incentives to support the said electric vehicles, of which 24.79 lakh are e-2Ws, 3.16 lakh are e-3Ws, and 14,028 are electric buses. 

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Aside from that, the PM E-Drive will also incentivise 88,500 electric vehicle charging stations to boost EV charging infrastructure in India. Plus, an outlay of Rs 2,000 crore has been kept aside by the Ministry of Heavy Industries for the installation of 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for electric buses, and 48,400 fast chargers for electric two- and three-wheelers. However, electric or hybrid passenger vehicles remain out of the ambit of the scheme. Further details are awaited.

FAME II: A Look Back 

To give you a brief background, the second phase of FAME was rolled out in 2019 with an initial outlay of Rs 10,000 crore for three years expiring in 2022 but was later extended until March 2024 with an additional outlay of Rs 1,500 crore. The scheme was originally meant to support 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 passenger cars, and 7,000 electric buses.

After FAME II expired in March 2024, the government rolled out the EMPS (Electric Mobility Promotion Scheme) 2024 in India. The EMPS 2024, originally valid for four months (April 1 to July 31, 2024), was extended for two more months (until September). Launched on April 1 with a total outlay of Rs 500 crore, the scheme applies mainly to commercially registered electric two- and three-wheelers, along with privately or corporate-owned registered electric two-wheelers. 

Also Read: FAME III Scheme to be Rolled Out soon, Will Replace EMPS 2024

Following the expiry of the ongoing EMPS scheme – the budget of which was enhanced by Rs 778 crore in July 2024, FAME III is expected to be rolled out in 'a month or two'. While yet to be confirmed, market reports suggest that FAME III could come with a total outlay of Rs 2,000 crore for the development of electric mobility infrastructure, including charging stations.