The Ministry of Heavy Industries has announced the extension of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme from two years to four years. Initially launched on 29 September 2024 with a total outlay of ₹10,900 crore, the scheme will now be implemented until 31 March 2028, within the same budget.
However, the terminal date for registered electric two-wheelers (e-2W), e-rickshaws, e-carts, and electric three-wheelers (L5) remains 31 March 2026.
This extension reflects the government’s commitment to accelerating e-mobility in India, supporting Make in India through phased manufacturing, and boosting the EV ecosystem across key vehicle segments.
The Minister stated that under the visionary leadership of our Prime Minister, Shri Narendra Modi, the country is taking rapid strides towards the acceleration of e-mobility in India. The PM E-DRIVE scheme enables Make in India through its Phased Manufacturing program.
The PM E-DRIVE Scheme aims to accelerate the adoption of electric vehicles (EVs), establish a robust charging infrastructure, and strengthen the EV manufacturing ecosystem in the country. This extension until 31 March 2028 is required for e-trucks, e-buses, and testing agencies due to their specific challenges. The e-trucks market is still in a nascent phase. In view of this, full-scale commercial production is likely to take some more time. Likewise, e-buses, supported by a ₹4,391 crore allocation for deploying 14,028 units, require a post-selection process starting March 2026, with grant disbursements tied to milestones over 18 months, underscoring the need for additional time. Furthermore, the procurement of testing agency equipment will require more time for tendering, evaluation, procurement, and commissioning to maintain quality and safety standards across these segments.
This is a fund-limited scheme. The total payout is restricted to the sanctioned outlay of ₹10,900 crore. If funds for the scheme or its sub-components are exhausted before the terminal date of 31 March 2028, the scheme or its relevant sub-components will be closed, and no further claims will be entertained.
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