Massive Rs 14k Crore Boost for EVs: Transforming Ambulances, Buses, and Trucks for a Greener Future | Economy & Policy News
Union Cabinet Approves Major EV Schemes Worth Rs 14,335 Crore
The Union Cabinet has greenlit two significant initiatives totaling Rs 14,335 crore to advance electric vehicle (EV) usage across India. The newly approved schemes include PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE), with a budget of Rs 10,900 crore over two years, and PM-eBus Sewa-Payment Security Mechanism (PSM), allocated Rs 3,435 crore.
PM E-DRIVE supersedes the previous Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) schemes, originally rolled out in 2015 and succeeded by FAME-II. This new initiative aims to further reduce carbon emissions and enhance EV adoption.
Under PM E-DRIVE, the scheme will support 2.47 million electric two-wheelers, 316,000 electric three-wheelers, and 14,028 e-buses. It includes Rs 3,679 crore in subsidies and demand incentives primarily for e2Ws, e3Ws, e-ambulances, and e-trucks, excluding e-cars. A novel e-voucher system will facilitate these incentives through Aadhaar verification at the time of purchase.
The initiative will also boost public EV infrastructure by installing 74,300 charging stations, including 22,100 fast chargers for e-cars, 1,800 for e-buses, and 48,400 for e2Ws and e3Ws, with a Rs 2,000 crore allocation.
PM-eBus Sewa-PSM will bolster public transport by deploying over 38,000 e-buses between 2024 and 2029, ensuring operational support for up to 12 years. Additionally, the government has allocated Rs 4,391 crore for 14,028 e-buses procurement, with CESL managing demand in nine major cities.
Moreover, Rs 500 crore each will be directed towards e-ambulances and e-trucks. To support evolving technologies and green mobility, the Ministry of Heavy Industries will modernize its testing agencies with a Rs 780 crore budget.
Reflecting on the past, the FAME scheme significantly boosted EV sales and industry players from 2015 to 2024. With the new schemes, the government aims to continue this growth trajectory while meeting emission reduction targets.
First Published: Sep 11 2024 | 9:58 PM IST
Original Story https://www.business-standard.com/economy/news/centre-approves-rs-10-900-crore-pm-e-drive-to-push-electric-mobility-124091101443_1.html
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