New Delhi: The government has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme till March 31, 2028, and the incentives for electric two-wheelers (e2Ws) have been halved to Rs 2,500 per kWh from Rs 5,000 per kWh earlier.
In a notification issued late on Monday, the Ministry of Heavy Industries said registered electric two-wheelers can avail an incentive of Rs 2,500 per kWh, capped at Rs 5,000 per vehicle, for the period between April 1, 2025, and March 31, 2028.
In comparison, for FY 2024-25, electric two-wheelers were eligible to avail an incentive of Rs 5,000/ kWh, capped at Rs 10,000 per vehicle.
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The maximum Ex-factory price for E-two wheelers to avail the incentive is Rs 1.5 lakh, with a total fund support of Rs 2,767 crore from the Ministry of Heavy Industries.
"The proposed amount of incentive per kWh is, however, subject to review as per the reduction in vehicle cost and would be notified accordingly from time to time. The incentive shall be limited to as specified above or 15 per cent of ex-factory price of e-2W/ e-3W, whichever is lower," the notification stated.
The PM E-DRIVE Scheme, with an outlay of Rs 11,900 crore, is being implemented from April 1, 2024 till March 31, 2028, for faster adoption of electric vehicles (EVs), setting up of charging infrastructure and development of EV manufacturing ecosystem in the country.
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"This is a fund-limited scheme. Total payout under the Scheme shall be limited to the scheme outlay of Rs 11,900 crore. In case the funds for the Scheme or its relevant sub-components are exhausted prior to the terminal date of the Scheme i.e. 31 March 2028, then the Scheme or its relevant sub-components will be closed accordingly, i.e. no further claims will be entertained," the notification said.
Since March 31, 2028 is the terminal date for all segments under the Scheme, the last date for submission of any claims for any scheme component shall be December 31, 2027, the Ministry clarified.
