The Union Cabinet has recently approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme to increase the consumption of electric vehicles in the country. Under this, there will be a program to increase the manufacturing of EV equipment at the local level. The PM will replace the e-drive scheme FAME scheme. The government has sanctioned Rs 10,900 crore for this scheme. Several media reports states that a phased manufacturing program (PMP) will be implemented to increase the manufacturing of EV equipment in the country under the PM E-Drive Scheme.
Under the scheme, EV manufacturers who buy equipment local level will get financial assistance without the need for domestic price hike. To get subsidy, the components of EV equipment must assemble locally. However, suppliers can import spare parts.
The report quoted a senior officer as saying that local EV manufacturing will be promoted under the PMP. Under this, companies will have to follow the PMP rules within six months of the scheme notification to get subsidy. It was further said that subsidy companies would have to ensure that EV equipment is manufactured in India. The report said that in 2025-26, financial assistance for electric two-wheelers will be reduced to Rs 5,000 per vehicle and subsidy for three-wheelers to Rs 25,000 per vehicle.
