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Tag: PM E-drive Scheme

  • Centre Unveils Guidelines for INR 2,000-Crore Nationwide EV Charging Network to Boost Electric Mobility

    Under the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) programme, the Ministry of Heavy Industries (MHI) has released the operating rules for the installation of EV public charging stations (EV PCS). Under the PM E-Drive programme, the government had set aside INR 2,000 crore to install over 72,300 public EV charging stations nationwide.

    The instructions state that in order to facilitate the building of EV charging infrastructure in various places, a tiered subsidy structure will be used. Upstream infrastructure and EV charging equipment (EVSE) on government buildings, including offices, housing complexes, hospitals, and educational institutions, will be fully subsidised, as long as the chargers are accessible to the general public for free.

    Government’s Push for EV’s Expansion Through Subsidies

    The subsidy covers 70% of the cost of EVSE and 80% of upstream infrastructure for transport hubs and public sector-controlled sites such as toll plazas, bus depots, airports, OMC outlets and train stations. Streets, malls, and market complexes are among the numerous public places where an 80% subsidy is provided exclusively for upstream infrastructure.

    Anywhere that battery charging stations and swapping are installed, they are also eligible for an 80% infrastructure subsidy. The benchmark price for upstream infrastructure is INR 6.04 lakh for chargers with a capacity of up to 50 kW and INR 24 lakh for chargers with a capacity of more than 150 kW.

    Benchmark prices for EV Supply Equipment (EVSE) differ depending on the kind and capacity of the charger; for instance, a 50 kW CCS-II charger costs INR 7.25 lakh, while a 100 kW CCS-II charger costs INR 11.68 lakh. These expenses will serve as the foundation for calculating the amounts of eligible subsidies.

    Scheme Focusing on Urban Centres

    The plan will prioritise state capitals, smart cities, satellite towns connected to the metro, high-density national and state highways, and metropolitan centres with a population of one million or more. Airports, train stations and petrol stations are examples of public transportation hubs that have been designated for infrastructure support.

    Incentives will also be available to state and Union Territory governments, including their PSUs and connected agencies, central ministries, and central public sector enterprises (CPSEs) to help electrify government department fleets. Using a specialised web platform, nodal bodies will be in charge of determining high-priority sites and submitting combined bids. Bharat Heavy Electricals Limited (BHEL) has been designated as the Project Implementation Agency in order to guarantee prompt and high-quality execution.

    A two-tranche approach will be used for the subsidy disbursal, with money being granted if performance and compliance requirements are met. In order to facilitate payments, monitor usage, and enable real-time station availability, integration with the National Unified EV Charging Hub will be required.

    Quick
    Shots

    •Full subsidy for chargers and
    upstream infrastructure on government buildings if accessible to the public.

    •70% subsidy for EVSE and 80% for
    upstream infra at transport hubs, airports, bus depots, OMC outlets, etc.

    •Priority to state capitals, smart
    cities, metro-connected satellite towns, and high-density highways.

    •Airports, train stations, and petrol
    pumps identified as key charging hubs.

  • The Government will Shorten Time it Takes to Process EV Subsidy Claims

    According to reports, the Ministry of Heavy Industries (MHI) intends to cut the 40-day processing period for EV subsidy claims to just five days. The Centre aims to resolve technical bottlenecks and expedite verification procedures in order to carry out such a move.

    Under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) programme, the government is taking this action in an effort to reduce the backlog and guarantee the prompt distribution of EV subsidies.

    There is already a massive backlog of 126,000 pending subsidy claims for 2024–2025. There are 109,000 claims for e-2Ws alone out of 893,000 claims altogether. Face authentication concerns have been blamed for these delays since buyers’ appearances may differ from their Aadhaar images, which makes identity verification difficult. One of the MHI’s main initiatives to hasten EV adoption and build out supporting infrastructure nationwide is the PM E-DRIVE Scheme.

    The programme will replace previous programmes like FAME and EMPS-2024 and has a budgetary investment of INR 10,900 CR. It will run from October 2024 to March 2026.

    Government Pushing the Usage of EVs in India

    The action is in line with the government’s objective of having 30% of all automobile sales be electric by 2030. Additionally, this includes sector-specific goals, such as 80% of two- and three-wheelers, 40% of buses, and 70% of commercial vehicles being electric by 2030.

    The Ministry of Heavy Industries (MHI) earlier told the Lok Sabha that, as of December 2023, the government has given EV producers a total of INR 52.28 billion in subsidies, depending on the sale of around 1.15 million EVs.

     The development coincides with the nation’s EV industry’s growth, which is predicted to reach 20 million sales by 2030 and generate a $132 billion EV market by that time. The government has traditionally taken a protectionist stance towards the auto industry, enforcing high tariffs to encourage the development of a domestic EV ecosystem while keeping international players at bay.

     Furthermore, international businesses usually formed joint ventures with local firms to reach the Indian market. In the meantime, programmes such as PM e-Bus Sewa, FAME, and the PLI projects, among others, have contributed to the development of the necessary environment for local players to prosper.

    India has thus become the third-largest vehicle market in the world, giving rise to four soonicorns and two unicorns in the EV startup space.

    India’s EV Sector Spreading its Wings

    Since 2014, more than 119 EV businesses have raised over $3.7 billion in investment. With Ather starting its IPO subscription process on 28 April and Ola Electric listing last year, these businesses have also started to establish themselves on Indian exchanges.

    However, in response to increased international interest in gaining a piece of the Indian EV industry, the government is now considering opening the market to overseas competitors under certain restrictions.

    Prior to this, India was considering reducing import taxes on luxury EVs (those costing more than $35,000) from 110% to 15%, but only if automakers met specific requirements, such as investing at least INR 4,150 Cr ($500 Mn) in India and establishing a local production plant within three years.

     Recently, Elon Musk’s Tesla and Indonesian EV powerhouse VinFast have been attempting to enter the market.

  • PM E-drive: Government Announces Electric Vehicle Subsidy Program Worth INR 10,900 Crore

    On 30 September, the centre announced the PM E-DRIVE initiative. The initiative would be implemented from October 1, 2024, to March 31, 2026, with a INR 10,900 crore investment, according to a gazette notification. It seeks to provide a charging infrastructure, expedite the adoption of electric cars (EVs), and strengthen the nation’s EV production ecosystem.

    The current Electric Mobility Promotion Scheme (EMPS), 2024, will also be incorporated into this plan. The notice stated, “The PM E-DRIVE Scheme subsumes the number of vehicles and the expenditure under EMPS, 2024.”

    Electric two- and three-wheelers, e-ambulances, e-trucks, and “other new emerging EV categories” are all eligible for subsidies from PM E-DRIVE. Additionally, funding will be provided for the development of capital assets like e-buses, the construction of a network of charging stations, and the modernisation of testing facilities designated by this programme.

    State and Central Government Should Align to Boost EV Sector in India

    The state governments must provide additional assistance to the central government’s efforts to develop e-mobility.

    The announcement said, “States need to offer a bouquet of fiscal and non-fiscal incentives,” detailing potential incentives such as waivers of registration costs, parking fees, permits, concessional road tax, and toll tax.

    Schemes of INR 8,070 crore have been set aside for electric vehicles. The majority, or INR 4,391 crore, goes to buses, while two-wheelers come in second at INR 1,772 crore.

    Phased Manufacturing Programme (PMP)

    In order to facilitate the localisation of EV components, a Phased Manufacturing Programme (PMP) has also been notified under PM E-DRIVE. Starting on December 1, 2024, EV chargers will require a minimum of 50% domestic value addition (DVA) in order to qualify for incentives under the programme.

    Financial assistance for electric two-wheelers would also be cut in half starting in 2025–2026, at INR 5,000 per vehicle, according to the notification. The maximum subsidy for electric three-wheelers will be INR 25,000 per car.

    The PM E-DRIVE programme aims to subsidise vehicles that are made locally, just like its predecessor, the Faster Adoption and Manufacturing of Electric Vehicles (FAME) programme. However, the previous version was tainted by cases of businesses selling mostly imported cars and fraudulently obtaining subsidies. With the new plan’s strict checks, the government has tried to allay these worries.

    Project Implementation and Sanctioning Committee (PISC)

    The Secretary of Heavy Industries will serve as the chair of the interministerial Project Implementation and Sanctioning Committee (PISC), which will supervise the programme. The successful implementation of the programme and progress monitoring will fall under the purview of the PISC. It will also have the power to resolve any issues that arise, such as updating the incentives, adding more e-buses, and approving policies for testing agencies.

     Vehicles must be equipped with cutting-edge battery technology and registered as “motor vehicles” under the Central Motor Vehicle Rules (CMVR) in order to be eligible for the PM E-DRIVE incentives. 

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