The government has made some big decisions regarding electric vehicles.
The central government is taking “quick” decisions on the electric vehicle front and is also releasing funds quickly. The Union Cabinet on Wednesday took very important decisions on the electric vehicle sector. According to the government, two major schemes with a total outlay of Rs 14,335 crore have been approved to promote the use of electric vehicles like electric buses, ambulances and trucks. The first of these schemes is the PM e-Drive scheme with an outlay of Rs 10,900 crore while the second is the PM-e-Bus Service-Payment Security Mechanism (PSM) scheme with a budget of Rs 3,435 crore. Let us also tell you what kind of information the government has provided on these schemes.
PM e-drive will replace FAME
These schemes were approved at the Union Cabinet meeting chaired by Prime Minister Narendra Modi. Information and Broadcasting Minister Ashwini Vaishnav said that the PM e-Drive scheme is a great decision to reduce pollution. The two-year PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-Drive) scheme will replace the FAME scheme which is in force till March 2024. The FAME scheme was launched in April 2015 to accelerate the deployment and manufacturing of hybrid and electric vehicles.
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The Union Cabinet, chaired by Hon’ble Prime Minister Shri @narendramodiThe Indian government has approved the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ to promote electric mobility in the country, with an outlay of Rs 10,900 crore over two years.#PMeDrive pic.twitter.com/crwQdpcCrI
— Ministry of Heavy Industries (@MHI_GoI) September 11, 2024
88,500 charging stations will be installed
The PM e-Drive scheme will support 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers and 14,028 electric buses. Support will also be provided to 88,500 charging stations under the PM e-Drive scheme. This will help in eliminating concerns related to long-distance travel of electric vehicles. According to an official release, the Ministry of Heavy Industries will offer e-vouchers to avail the benefits of demand incentives under this scheme. At the time of purchase of the electric vehicle, the buyer will be able to get an Aadhaar-authenticated e-voucher from the portal of this scheme.
provision of subsidy
The new scheme provides demand side subsidies/incentives worth Rs 3,679 crore for adoption of electric two-wheelers, electric three-wheelers, electric ambulances, electric trucks and other emerging electric vehicles (EVs). Under this scheme, state-owned transport undertakings and public transport agencies have set aside an amount of Rs 4,391 crore for purchase of 14,028 electric buses.
According to the official release, CESL, which is active in the field of clean and affordable energy, will prepare data on transport demand in nine cities with a population of over 40 lakh. These include Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune and Hyderabad. Intercity and interstate electric buses will be supported in consultation with the states.
Allocation for e-Ambulances and e-Trucks
Apart from this, Rs 500 crore has been earmarked for the deployment of e-ambulances. This is a new initiative by the government to increase the use of e-ambulance for comfortable transportation of patients. Vaishnav said that an amount of Rs 500 crore has also been provided under the PM e-Drive scheme for the adoption of electric trucks. The scheme proposes to install 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for electric buses and 48,400 fast chargers for electric two-wheelers. The outlay for the charging stations will be Rs 2,000 crore.
What is the PSM scheme?
Vaishnav said that this entire programme will go a long way in sustainable development and ensuring that our country moves rapidly towards the use of electric vehicles. He said that a provision of Rs 3,435 crore has been made for deploying 38,000 electric buses under the PM-e-Bus Payment and Service Security Mechanism (PSM) scheme for procurement and operation of electric buses by public transport authorities (PTAs). The scheme will support deployment of over 38,000 electric buses from FY 2024-25 to FY 2028-29. The scheme will support operation of electric buses for a period of up to 12 years from the date of implementation.
The PM-eBus Sewa payment security facility, with an outlay of Rs 3,435.33 crore, will enable deployment of over 38,000 electric buses for up to 12 years.#P.M-eBusSewa-PSM #EBuses pic.twitter.com/Yrsl6yL77b
— Ministry of Heavy Industries (@MHI_GoI) September 11, 2024
According to the release, the PSM scheme will ensure timely payment to vehicle manufacturers/operators through a dedicated fund. In case of default in payment by the PTA, the implementing agency will make necessary payment from the CESL Scheme fund, which will then be recovered by the PTA/State/UT. Earlier, the government had implemented the FAME scheme in two phases. Under FAME-1 and FAME-2, financial support was provided to around 16 lakh electric vehicles.
