Indian Economy News

Government Expands PM E-DRIVE Scheme to Boost India’s Electric Mobility Ecosystem

The Indian Government has allocated Rs. 1,634.62 crore (US$ 182 million) through the PM E-DRIVE Scheme as of November 23, 2025. This initiative plays a crucial role in facilitating India's transition to electric mobility by offering targeted assistance for the adoption of electric vehicles, enhancing infrastructure, and improving clean public transport systems. Within this initiative, Rs. 500 crore (US$ 56 million) has been specifically allocated for e-ambulances. The Ministry has completed discussions with stakeholders and developed guidelines for implementing this part of the program. While the initiative has been extended until March 31, 2028, for e-ambulances and other vehicle categories, the cutoff for electric two-wheelers (e-2Ws) and electric three-wheelers (e-3Ws) remains March 31, 2026. A significant budget of Rs. 2,000 crore (US$ 222 million) has been earmarked for establishing Electric Vehicle Public Charging Infrastructure (EVPCI). However, no funds have been granted for this component as of now. Two prominent Oil Marketing Companies have shown interest and submitted proposals for setting up charging stations under the initiative.
To improve public transportation cleanliness, the PM E-DRIVE Scheme has allocated 1,500 electric buses for Mumbai, 2,800 for Delhi, and an additional 1,000 for Pune. These allocations are expected to greatly decrease emissions in urban areas and enhance the convenience of commuting. Furthermore, the government has released updated guidelines for electric vehicle charging infrastructure to States and Union Territories, promoting consistency, greater accessibility, and effective usage. This information was presented in the Lok Sabha by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.