PM E-DRIVE Scheme Extended Till March 2028; Only Rs 2,017 Crore Spent So Far
PM E-DRIVE Scheme Extended Till 2028.
The government has announced an extension of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme until March 31, 2028, citing slow fund utilisation since its launch in April 2024. The announcement was made by Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma in a written reply to the Lok Sabha on Tuesday.
The PM E-DRIVE Scheme aims to accelerate the adoption of electric vehicles (EVs) and support the development of related infrastructure across India. However, fund utilisation under the scheme has been limited, with only Rs 2,017 crore spent out of the total allocation of Rs 10,900 crore as of March 19. Varma attributed the slow disbursement to the phased implementation strategy, milestone-based fund releases, and the evolving readiness of specific EV segments.
According to the data shared in Parliament, significant portions of the scheme’s outlay remain unutilised. Under the demand incentive component, e-two-wheelers received Rs 1,260 crore, while L5 category e-three-wheelers received Rs 731 crore. Smaller amounts were spent on e-rickshaws and e-carts, totalling Rs 6.7 crore. However, no funds have been released for e-ambulances or e-trucks, which have a combined scheme allocation of Rs 1,000 crore.
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The creation of capital assets has seen no expenditure to date. This includes funding for e-buses, for which Rs 4,391 crore is earmarked, EV public charging stations with an allocation of Rs 2,000 crore, and the upgradation of testing agencies set aside Rs 780 crore. Minister Varma highlighted that the scheme’s phased rollout and milestone-based fund release mechanism contributed to the delayed utilisation of these resources.
Administrative expenses under the scheme have amounted to Rs 19.74 crore of the Rs 50 crore allocated. Officials maintain that careful monitoring and gradual implementation are necessary to ensure funds are disbursed efficiently while meeting technical and regulatory requirements.
The extension of PM E-DRIVE provides additional time for stakeholders to fully implement the scheme and expand EV adoption in India. Analysts note that the continued focus on electric mobility infrastructure and incentives could play a crucial role in achieving the government’s broader sustainability and carbon reduction targets.
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