On September 11, 2024, through an official statement by the press information bureau (PIB), the Indian Government approved the proposal of Ministry of Heavy Industries (MHI) for implementation of the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme’ (PM E-DRIVE Scheme), for increased promotion of electric mobility in the country. The detailed framework of the PM E-DRIVE Scheme is expected to be notified in the next few weeks’ time.

With an outlay of INR 10,900 Crores over 2 (two) years, the PM E- DRIVE Scheme aims to boost faster adoption of electric vehicles (EVs) across various categories, including electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), e-ambulances, e-trucks, e-buses and other emerging EVs. The PM E-DRIVE Scheme seeks to reduce the environmental impact of transportation, improve overall air quality and foster a robust EV ecosystem, in line with India’s push towards use of sustainable best practices.

Some of the key components of the PM E-DRIVE Scheme include –

(i) Introduction of e-vouchers – MHI is introducing a new e-voucher system, authenticated through Aadhaar to systematise the availability and reimbursement of demand incentives, making it more accessible to EV buyers, dealers and original equipment manufacturers.

(ii) Promotion of ‘e-ambulances’ – A new initiative of the Indian Government, the PM E-DRIVE Scheme has allocated a sum of INR 500 Crore for deployment of e-ambulances, which reflects government’s recognition of ‘healthcare’ as a critical sector requiring green solutions. The performance and safety standards of e-ambulances will be formulated in consultation with the Ministry of Health and Family Welfare (MoHFW), Ministry of Road Transport and Highways (MoRTH) and other relevant stakeholders.

(iii) Addressing ‘range anxiety’ – With the installation of 72,300 fast-charging stations, the PM E-DRIVE Scheme aims to alleviate ‘range anxiety’, a common concern among potential EV buyers. This infrastructure development is crucial to ensure that adoption of EVs becomes a viable and realistic option for personal and commercial use.

(iv) Modernisation of MHI test agencies – In view of the growing Indian EV ecosystem, the PM E-DRIVE Scheme has approved an outlay of INR 780 Crore to upgrade and modernise the test agencies of MHI to deal with the new and emerging technologies to promote green mobility.

(v) Encouragement of other public e-transportation – (a) E-buses – The PM E-DRIVE Scheme earmarks INR 4,391 Crore for procurement of 14,028 e-buses, prioritising 9 (nine) cities with more than 40 Lakh population including Mumbai, New Delhi, Kolkata and Bangalore, where pollution levels are relatively higher. (b) E-trucks – Trucks are a major contributor to air pollution. The PM E-DRIVE Scheme promotes deployment of e-trucks by allocating INR 500 Crore for incentivising use of e-trucks.

The PM E-DRIVE Scheme is fostering mass e-mobility by expanding the focus and including critical new sectors such as e-ambulances and e-trucks while also encouraging scrapping of old and polluting  vehicles. It emphasises on phased manufacturing program (PMP), which encourages domestic production of EV components in alignment with the ‘Aatmanirbhar Bharat’ initiative.

In addition, the PM E-DRIVE Scheme also plays a significant role in India’s efforts to integrate the Sustainable Development Goals (SDGs) issued by the United Nations. It directly contributes to SDG 7 (Affordable and Clean Energy) by promoting EVs and reducing dependence on fossil fuels. Further, the PM E-DRIVE Scheme is expected to generate green employment opportunities across the EV supply chain, from manufacturing to infrastructure development in alignment with SDG 8 (Decent Work and Economic Growth).

In the context of SDG 9 (Industry, Innovation, and Infrastructure), the PM E-DRIVE Scheme encourages technological advancement and promotes the development of a resilient domestic EV manufacturing industry. In terms of SDG 13 (Climate Action), the PM E-DRIVE Scheme industry. In terms of SDG 13 (Climate Action), the PM E-DRIVE Scheme diesel powered vehicles on the road, significantly cutting down carbon emissions and reducing air pollution.

Globally, several countries have implemented successful EV subsidy programs. Norway leads the way for EV adoption with extensive government support and incentives, while China’s large-scale subsidies and manufacturing targets have made it one of the largest EV markets. The PM E-DRIVE Scheme puts India on a strong trajectory to close the gap with inclusion of unique aspects like e-ambulances, e-trucks and scrapping incentives, setting it apart in terms of scope and breadth.

The PM E-DRIVE Scheme is another transformative initiative that addresses electric mobility and aims to reduce emissions, promote sustainable public transportation and foster economic growth through green industries. It sets India on a promising path towards achieving its net-zero commitments and paves the way for India to emerge as a leader in global electric mobility. However, globally, one also needs to constructively work towards finding optimal solutions and alternatives to manufacturing of batteries for EVs and their subsequent disposal, which if left unaddressed, would amount to huge environmental risks.

This article was originally published in ET EnergyWorld on 1 October 2024 Written by: Radhika M Dudhat, Partner. Click here for original article.

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