PM E-Drive scheme support for electric 2-wheelers till Mar 2028, outlay up
This story was originally published at 20:41 IST on 11 August 2026
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MUMBAI – The Ministry of Heavy Industries has extended the eligibility for electric two-wheelers under the PM Electric Drive Revolution in Innovative Vehicle Enhancement, or the PM E-Drive scheme, until Mar. 31, 2028, as per a gazette notification issued late Monday. The incentives for electric two-wheelers have been cut to INR 2,500 per kilowatt-hour from INR 5,000 per kilowatt-hour, capped at INR 5,000 per vehicle.
The total outlay for the scheme from the ministry stands at INR 27.67 billion, up from INR 17.72 billion earmarked before for 2.48 million electric two-wheelers. The scheme is now expected to support 4.56 million electric two-wheelers till Mar. 31, 2028, when the scheme will close.
The incentive was higher in 2024-25 (Apr-Mar), the first year of the scheme, at INR 5,000 per kilowatt-hour, capped at INR 10,000 per vehicle. In FY26, it was reduced to INR 2,500 per kilowatt-hour, capped at INR 5,000 per vehicle. The maximum ex-factory price of the electric two-wheeler has been set at INR 150,000 if the incentive is to be availed.
"This is a fund-limited scheme. Total payout under the Scheme shall be limited to the scheme outlay of Rs 11,900 crore. In case the funds for the Scheme or its relevant sub-components are exhausted prior to the terminal date of the Scheme i.e. 31 March 2028, then the Scheme or its relevant sub-components will be closed accordingly, i.e. no further claims will be entertained," according to the notification. The last date for submission of claims has been set at Dec. 31, 2027. End
Reported by Anand JC
Edited by Avishek Dutta
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