PM E-DRIVE Scheme to Roll Out 14,028 Electric Buses
The Union Cabinet has approved the PM E-DRIVE Scheme, which allocates Rs 4,391 crore to procure 14,028 electric buses by State Transport Undertakings and public transport agencies. The scheme also includes provisions for managing demand aggregation in major cities and supporting intercity and interstate e-bus services.
New Delhi, September 11, 2024 — The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved the ambitious “PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme,” aimed at driving the adoption of electric mobility across India.
With an extensive budget of Rs 10,900 crore over the next two years, this initiative is set to revolutionize public transportation by supporting the deployment of electric vehicles.
A key component of the PM E-DRIVE Scheme is its allocation of Rs 4,391 crore to procure 14,028 electric buses, which will be distributed among State Transport Undertakings (STUs) and public transport agencies.
This funding is designed to enhance public transport fleets’ sustainability and reduce the environmental impact of diesel and CNG buses.
The scheme also provides Rs 3,679 crore in incentives for other electric vehicles, including two-wheelers (e-2Ws), three-wheelers (e-3Ws), electric ambulances, and trucks. The financial backing will support the acquisition of up to 24.79 lakh e-2Ws and 3.16 lakh e-3Ws, in addition to the planned electric buses.
Also Read: PM-eBus Sewa (PSM) Scheme Approved For 38,000 electric buses by 2029
Demand aggregation for these buses will be managed by Convergence Energy Services Limited (CESL) across nine major cities, each with populations exceeding 4 million—Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune, and Hyderabad.
The scheme will also support intercity and interstate electric bus services, in consultation with state governments.
Cities and states that prioritize replacing outdated buses with new electric models will be given preference, aligning with the Ministry of Road Transport and Highways (MoRTH) Vehicle Scrapping Scheme guidelines.
Additionally, the Union Cabinet has endorsed the “PM-eBus Sewa-Payment Security Mechanism (PSM) scheme,” with a budget of Rs. 3,435.33 crore dedicated to deploying more than 38,000 electric buses by 2029. This program is designed to streamline the acquisition and management of electric buses for Public Transport Authorities.
Union Cabinet, chaired by Prime Minister Shri @narendramodi Ji, has approved the 'PM E-DRIVE Scheme' with a budget of Rs 10,900 over 2 years to advance electric mobility in India.
— Nitin Gadkari (@nitin_gadkari) September 11, 2024
The scheme provides Rs 3,679 crore in subsidies and incentives for electric two-wheelers,… pic.twitter.com/3WG8tS3Sr7
PM E-DRIVE Scheme to Expand EV Charging Infrastructure
Furthermore, to tackle range anxiety and boost electric vehicle adoption, Rs 2,000 crore will be allocated for establishing public charging infrastructure. This includes the installation of 22,100 fast chargers for electric four-wheelers, 1,800 for electric buses, and 48,400 for e-2Ws and e-3Ws.
The expansion of charging stations is aimed at enhancing the accessibility and convenience of electric vehicle use across urban centers and key highways.
Also Read: Veera Mahasamrat EV 13.5M Specs: World’s Fastest Charging E-Bus
Industry Leaders Lend Support
Leaders in the electric bus industry have voiced strong support for the PM E-DRIVE Scheme.
Anchal Jain, Chief Executive Officer of PMI Electro Mobility Solutions Private Limited, stated, “As an electric bus manufacturer, we view the PM E-DRIVE Scheme as a crucial and eagerly anticipated advancement for our sector. We commend the Government for its ongoing commitment to fostering industry growth and creating new employment opportunities, including within State Transport Undertakings (STUs). The introduction of the payment security mechanism is particularly promising, as it will significantly enhance stakeholder confidence.”
Mahesh Babu, CEO of SWITCH Mobility Ltd., expressed enthusiasm about the Union Cabinet’s approval of the PM E-DRIVE Scheme. “This approval marks a significant victory for the electric vehicle industry and its future. We extend our gratitude to the Government of India and the Ministry of Heavy Industries for their support,” he said.
