BUDGET
Centre's flagship EV scheme to get INR 15 bln for FY27
This story was originally published at 18:25 IST on 1 February 2026
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MUMBAI – The Union Budget for 2026-27 (Apr-Mar) has proposed an outlay of INR 15 billion for the Centre's flagship scheme for the promotion of electric vehicles in India, the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme. The government had budgeted an outlay of INR 40 billion for the scheme for 2025-26 (Apr-Mar), which has been revised lower to INR 13 billion.
The scheme was introduced in September 2024 to replace the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India scheme, which was active from 2015 to 2024. The PM E-Drive scheme became the flagship scheme to promote electric vehicles from October 2024. While the PM E-Drive scheme was originally meant to be active for two years, it was extended till Mar. 31, 2028, for specific segments such as electric buses, electric trucks, and electric ambulances. The terminal date for electric two- and three-wheelers is Mar. 31, though the overall outlay for the scheme remains unchanged at INR 109 billion over four years.
In FY25, the government incurred INR 9.93 billion towards this scheme. As of Dec. 31, the ministry had disbursed INR 17.03 billion in claims to companies for the sale of 2.14 million electric vehicles under the scheme.
Under the scheme, the government earmarked INR 17.72 billion for electric two-wheelers and INR 9.07 billion for electric three-wheelers. Electric ambulances and trucks were allocated INR 5 billion each. Additionally, the scheme provided INR 43.91 billion for electric buses and INR 20 billion for the installation of charging stations for electric vehicles. End
Reported by Anand JC
Edited by Saji George Titus
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