PM E-DRIVE Scheme Explained: Eligibility, Charging Stations And Operational Guidelines

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, which came into effect from October last year, is aimed at accelerating the adoption of electric vehicles (EVs) across the country. Recently, operational guidelines were issued, by the central government, regarding the deployment of nearly 72,300 public EV charging stations in different states, with a total outlay of Rs 2,000 crore.

Being among the flagship schemes under the Ministry of Heavy Industries, PM E-DRIVE looks forward to establish charging infrastructure and come up with a robust EV manufacturing ecosystem in India.

To install EV charging infrastructure at multiple locations, the latest guidelines have recommended following a tiered subsidy structure, according to PTI. The key focus of the scheme is on urban centres having more than a million population; smart cities; state capitals; metro-connected satellite towns; high-density national and state highways.

Under this, 100% subsidy will be provided to government premises, including offices, residential complexes as well as hospitals and educational institutions for EV charging equipment and upstream infrastructure. For this, the chargers need to offer free access to the public.

As per the guidelines, 80% of upstream infrastructure and 70% of EV supply equipment cost will be covered under the subsidy for locations across cities and highways that are controlled or managed by both central or state governments and their PSUs.

This includes Railway stations, airports, retail outlets of public sector OMCs, metro stations, bus stations (operated through STUs), municipal parking lots among others.

Also, 80% subsidy will be provided on Upstream Infrastructure for cities, including streets, market complexes, shopping malls and others that are located along highways and expressways. There will also be 80% subsidy on Upstream Infrastructure for Battery Swapping/Charging Stations at any location.

The norms highlight that eligible entities, such as State/Union Territory governments and central ministries, have to appoint nodal agencies to aggregate the EV PCS demand. Proposals in this regard need to be submitted to the Ministry of Heavy Industries.

These nodal bodies will later be responsible for taking into consideration high-priority locations and submit consolidated proposals via dedicated online portal, according to PTI.

The guidelines mention that Bharat Heavy Electricals Limited (BHEL) will work as the Project Implementation Agency (PIA) to deploy EV public charging stations. A two-tranche system will be utilised to disburse subsidy. The funds will be given after meeting performance benchmarks and compliance.

Approved by the Cabinet with a Rs 10,900 crore financial outlay, PM E-DRIVE came into effect in October last year and was originally scheduled to remain in force until March 31, 2026. In August 2025, Union Minister HD Kumaraswamy extended its duration from two years to four years. This means, it will now remain implemented until March 31, 2028.

The Ministry of Heavy Industries, however, said that March 31, 2026 will remain the terminal date for registered e-2W, e-3W (L5), e-rickshaws and e-carts.

PM E-DRIVE: Eligible

Two-wheelers: It will incentivise about 24.79 lakh electric two-wheelers (e-2Ws), both commercial and private, which are equipped with advanced batteries.

Three Wheelers: The scheme will incentivise nearly 3.2 lakh electric three-wheelers (e-3Ws), including registered e-rickshaws/e-carts or L5 category vehicles. 

e-Ambulance: Rs 500 crore allocated to deploy e-ambulances for comfortable patient transportation.

e-Trucks: Rs 500 crore provided to incentivise the use of e-trucks. People having scrapping certificates from MoRTH-approved vehicle scrapping centers (RVSF) remain eligible.

e-Buses: Rs 4,391 crore allocated to procure 14,028 electric buses by STUs/public transport agencies. 

Charging infrastructure: Establishment of a robust network of public charging stations. This includes 22,100 fast chargers for e-4Ws, 48,400 for e-2Ws and e-3Ws, as well as 1,800 for e-buses.