BAJAJ BROKING
The ₹10,900 crore PM E-Drive Scheme replaces FAME to promote electric buses, trucks, and ambulances. It includes infrastructure investment for 72,300 fast chargers across India, excluding private EVs.
The Indian government has officially replaced the FAME initiative with the new PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme. With an outlay of ₹10,900 crore, this scheme is designed to strengthen electric mobility infrastructure in India, with a focus on electric public transport and public health vehicles. The Union Cabinet's announcement marks a strategic shift towards cleaner, greener transport in densely populated urban areas.
The PM E-Drive Scheme has made a significant allocation of ₹4,391 crore to procure 14,028 electric buses. These buses will primarily serve state transport undertakings (STUs) and public transport agencies in nine Indian cities with populations exceeding 4 million. The aggregation of demand will be overseen by Convergence Energy Services Limited (CESL), aiming to accelerate the deployment of electric buses to reduce emissions in heavily congested urban centres.
Alongside this, the scheme has allocated ₹500 crore each for promoting electric trucks and electric ambulances. Electric trucks are a vital step toward reducing vehicular pollution from freight movement, while electric ambulances are part of a broader initiative to modernise public health services. Safety and performance standards for electric ambulances will be established in collaboration with the Ministry of Health and Family Welfare (MoHFW), ensuring these vehicles meet stringent public health requirements.
To address concerns over range anxiety, the PM E-Drive Scheme includes significant investment in public electric vehicle charging stations (EVPCS). The Union Cabinet has earmarked ₹2,000 crore to install a total of 72,300 fast chargers across India. This includes 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for electric buses, and 48,400 fast chargers for electric two-wheelers and three-wheelers. This extensive network aims to alleviate concerns about charging availability, making electric vehicles more practical for day-to-day use.
In addition to promoting electric vehicles, the PM E-Drive Scheme allocates ₹780 crore to modernise test agencies under the Ministry of Heavy Industries (MHI). These funds will ensure that India's testing infrastructure is equipped to handle emerging green mobility technologies, ensuring safety and compliance with international standards.
Notably, the PM E-Drive Scheme marks a departure from earlier policies by excluding electric cars for private or shared mobility. This change signifies a shift in the government’s focus towards public and commercial electric vehicles, prioritising larger-scale transport solutions over private EV adoption.
With the launch of the PM E-Drive Scheme, India continues its journey toward a cleaner, more sustainable future. This new initiative focuses on strengthening public transport and commercial vehicle electrification while addressing infrastructural gaps such as charging stations, leaving private electric vehicles outside its scope.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://bit.ly/3Tcsfuc
Share this article:
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading