PM E-DRIVE Scheme Accelerates EV Adoption By Lowering Upfront Costs: Minister Varma

(MENAFN- KNN India) New Delhi, Feb 7 (KNN) The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme has accelerated the adoption of electric vehicles (EVs) across India by lowering upfront costs through targeted demand incentives, Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma said in a written reply to a question in the Rajya Sabha on Friday.

The scheme covers multiple EV segments, including electric two-wheelers, three-wheelers such as e-rickshaws and e-carts, L5 category vehicles, e-ambulances and e-trucks.

Under the scheme, incentives are provided directly to buyers and later reimbursed by the government to original equipment manufacturers (OEMs).

Coverage and Financial Support

The minister said the scheme supports the deployment of over 28 lakh electric vehicles nationwide. It also provides grants for 14,028 electric buses operated by State Transport Undertakings (STUs).

In addition to vehicle incentives, the scheme supports the expansion of charging infrastructure and the upgradation of testing facilities. An allocation of Rs 2,000 crore has been earmarked for setting up electric vehicle public charging stations across the country.

Reimbursements to Manufacturers

As of December 31, 2025, the government has reimbursed Rs 1,703 crore to OEMs of electric two-wheelers and three-wheelers. This amount represents reimbursement of demand incentives already extended to buyers under the PM E-DRIVE Scheme.

The minister said these measures have helped strengthen the EV ecosystem, improve consumer confidence and enable wider adoption of clean and sustainable mobility solutions.

(KNN Bureau)

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