PM E-Drive Scheme Extended Till 2028 for Electric Buses, Trucks, and Ambulances

PM E-Drive Scheme extended till 2028, and it is a fund-limited programme, meaning the scheme will be closed prematurely if the allocated funds are exhausted before the new end date of the scheme.

The Government of India has announced that the ₹10,900-crore PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme has been extended till 2028, shifting its validity from March 2026 for select categories of electric vehicles.

According to the official gazette notification, the extension applies to electric buses, e-ambulances, and e-trucks, while the terminal date for registered electric two-wheelers, e-rickshaws, e-carts, and registered e-three-wheelers (L5 category) remains unchanged at 31 March 2026.

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Limited Funds, First-Come-First-Serve Model

The notification states that the scheme remains a fund-limited programme, with the total outlay capped at ₹10,900 crore. If funds are exhausted before the new terminal date, the scheme or its sub-components will be closed prematurely, and no further claims will be accepted.

This first-come, first-serve funding model is expected to accelerate adoption and push manufacturers and operators to deploy eligible vehicles quickly.

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PM E-Drive Scheme Extended Till 2028: Strategic Implications for the EV Ecosystem

Industry experts see the PM E-Drive Scheme being extended till 2028 as a signal that the government intends to prioritize large-format electric vehicles that can have a measurable impact on urban air quality and long-distance logistics. While smaller EV segments like scooters and three-wheelers already have strong adoption momentum, buses, ambulances, and heavy trucks are considered key enablers of large-scale decarbonization in transport.

With the extended timeline, stakeholders have until March 2028 to leverage the scheme’s benefits—provided the funds last that long. This could lead to an intensified push in production, procurement, and deployment over the next 24 months.