New Delhi. To promote the sale of electric vehicles, the central government has announced a new subsidy scheme PM E-Drive. This scheme has been implemented after the FAME II subsidy scheme ended in March this year. However, only electric two-wheelers, three-wheelers and electric buses are included in this subsidy scheme, while electric and hybrid cars are out of this scheme. This scheme will remain in force till March 2025.
Under PM E-Drive, a total amount of Rs 10,900 crore has been set aside for 24,80,000 electric two-wheelers, 3,16,000 three-wheelers and 14,028 electric buses. This will be implemented as the third phase of the FAME scheme. Let us tell you that under the FAME-2 scheme, more than 16 lakh electric vehicles have been provided the benefit of subsidy.
Availability of charging stations will increase
Additionally, Rs 500 crore each has been set aside for electric trucks and hybrid ambulances, aimed at promoting EV adoption in critical service sectors and the commercial vehicle segment for the first time. The scheme for trucks will provide incentives only to those who have a scrapping certificate obtained from vehicle scrapping centres approved by the Road Ministry.
The e-drive scheme will also aim to develop a comprehensive charging infrastructure. Charging infrastructure development is also being promoted, with Rs 2,000 crore being provided for installing 22,100 fast chargers for electric four-wheelers, 1800 fast chargers for e-buses and 48,400 fast chargers for e-two-wheelers and three-wheelers.
Apart from the subsidy, the government also announced a Payment Security Mechanism Fund (PSMF) of Rs 3,435 crore for 38,000 electric buses, which will reduce financial risks for bus operators and promote electrification of the public transport network.
Those who buy electric cars will not get subsidy
Those buying private electric cars under the PM E-Drive scheme have been excluded from the subsidy. This is a big blow to India's largest electric car company Tata Motors and other electric passenger car manufacturers.
Union Heavy Industries Minister H D Kumaraswamy said the aim is to achieve 10% EV penetration in the two-wheeler sector and 15% EV penetration in the three-wheeler sector by March 2026 and accelerate the adoption of EVs and set up the necessary charging infrastructure to promote clean transportation. Responding to a question about the reason for excluding electric cars from the scheme, he said GST for private electric cars is at the lower slab of 5%.
Tags: Auto News, Electric Car, Electric Vehicles
FIRST PUBLISHED : September 13, 2024, 09:21 IST