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Informist, Friday, Nov. 29, 2024

 

By Krity Ambey 

 

NEW DELHI – The government is likely to spend about INR 52 billion in 2024-25 (Apr-Mar) under the schemes aimed at encouraging the adoption of electric vehicles in the country, a government official said. This includes disbursement under the PM Electric Drive Revolution in Innovative Vehicle Enhancement, or PM E-DRIVE scheme, as well as its predecessor, the Electric Mobility Promotion Scheme. 

 

The Union Cabinet approved PM E-DRIVE, which subsumed the Electric Mobility Promotion Scheme, in September with an outlay of INR 109 billion for two years. Since PM E-DRIVE started in October, the government expects to disburse a relatively smaller chunk from the corpus of INR 109 billion in FY25, the official told Informist. 

 

In the Budget for FY25, the government has allocated INR 31.71 billion under the Faster Adoption and Manufacturing of Electric Vehicles, or FAME II scheme, and Electric Mobility Promotion Scheme. While FAME II ended on Mar. 31, the allocation under it was utilised to fund its temporary substitute Electric Mobility Promotion Scheme, the official said. 

 

The main feature of the EV adoption schemes is that consumers could purchase electric or hybrid vehicles at a discounted price from manufacturers and the government reimbursed the difference to the auto manufacturers.

 

The government aims to review the sale of EVs and hybrid vehicles, and assess the performance of the EV manufacturing sector every three months to gauge the efficiency of the scheme, the official said. It may also hold stakeholder consultations on a quarterly basis, the official added.   

 

As FAME II ended on Mar 31, the government wanted to continue the benefits and temporarily ran the Electric Mobility Promotion Scheme for six months until it finalised the specifics for the third phase of FAME, which has been announced with the name PM E-DRIVE. Under PM E-DRIVE, the government will continue the benefits under the preceding schemes and also incentivise the purchase of e-truck after scrapping old truck.

 

The three schemes--PM E-DRIVE, Electric Mobility Promotion Scheme, and FAME II--are the descendants of the original Faster Adoption and Manufacturing of Electric Vehicles or FAME I scheme that the government had started nearly a decade ago. FAME I was operational till Mar 31, 2019. The government continued the subsidy after 2019 under the second phase of the scheme FAME II, along with the added focus of electrifying public transport.  End

 

Edited by Deepshikha Bhardwaj

 

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