Modi government urged to extend PM e-DRIVE incentives for electric-2Ws
What's the story
A Parliamentary Standing Committee has recommended extending the PM E-DRIVE Scheme outlay and expanding incentives to promote electric vehicle (EV) adoption in India. The committee suggested that incentives for electric two-wheelers (e-2Ws) should be extended till March 31, 2028, the terminal year of the PM E-DRIVE scheme. The recommendations were made to the Ministry of Heavy Industries.
New proposals
Recalibration of investment thresholds under SPMEPCI recommended
The committee recommended a targeted consumer incentive mechanism for the electric four-wheelers. This is aimed at boosting adoption in that segment under the scheme. The panel further suggested recalibrating the investment thresholds under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). It also proposed permitting calibrated flexibility or differentiated eligibility criteria for high-potential domestic players to encourage their participation and growth.
Scheme specifics
Committee recommends revising incentives for electric 3Ws
The committee urged that the government revise and enhance targets for electric three-wheelers (L5 category). It suggested resuming incentives for this segment until March 31, 2028. The PM E-DRIVE Scheme is effective from April 1, 2024, to March 31, 2028, with a total outlay of ₹10,900 crore. For FY2026-27, the Union Budget has allocated ₹1,500 crore under the scheme.