Winning Bizness Desk

Mumbai. The Ministry of Heavy Industry (MHI) has resumed subsidies for electric three-wheelers under the PM e-Drive Scheme. On November 19, MHI announced the continuation of the scheme, offering subsidies of up to ₹50,000 on the purchase of electric three-wheelers. Earlier, the subsidy under this scheme for FY2025 was suspended as the government had achieved its financial target for the fiscal year. However, MHI has now approved additional funds from the scheme's total budget to meet the growing demand for subsidies. The extra allocation for FY2025 will be adjusted against the budget for FY2026.

Industry Concerns Over Budget Exhaustion

Industry stakeholders have expressed concerns that the FY2026 allocation may also be depleted by the first quarter of the fiscal year, given the growing popularity of electric three-wheelers. The ministry has yet to specify the exact number of vehicles eligible for the subsidy or the total amount allocated.

Key Details of the PM e-Drive Scheme

Launched last month, the PM e-Drive Scheme aims to promote electric vehicles (EVs), including two-wheelers, three-wheelers, ambulances, and trucks. With an outlay of ₹10,900 crore, the scheme will run from October 1, 2024, to March 31, 2026. It provides:-

• * Rs 10,000 subsidy for electric two-wheelers.
• * Rs 50,000 subsidy for electric three-wheelers in the first year, reducing to ₹25,000 in the second year.
• * 100% financial support for charging infrastructure development across 88,500 locations.

Focus on Charging Infrastructure

A significant portion (18%) of the scheme’s total outlay is reserved for developing robust charging infrastructure. Plans include:

• * 22,100 fast chargers for electric four-wheelers.
• * 1,800 fast chargers for electric buses.
• * 48,400 fast chargers for two-wheelers and three-wheelers.

EV Subsidies Under FAME-II Scheme

The PM e-Drive Scheme follows the FAME-II program, which ended on March 31, 2024. During its five-year run, the FAME-II scheme provided subsidies for 13,21,800 EVs with a total outlay of ₹11,500 crore.

Transparent Subsidy Distribution with e-Vouchers

The scheme introduces Aadhaar-verified e-vouchers to ensure transparency and prevent discrepancies in subsidy distribution. Buyers will receive these e-vouchers at the time of purchase, streamlining the process. With these initiatives, the government continues its push for sustainable mobility, targeting 10% EV penetration in the two-wheeler segment and 15% in the three-wheeler category by the end of the scheme.