PM E-Drive: States Yet To Get Subsidy Against Electric Bus, Trucks Procured
Union Minister HD Kumaraswamy confirmed in the Rajya Sabha that despite the PM E-Drive scheme’s approval, no funds have been released to support state procurement of electric commercial vehicles.
States are yet to receive any subsidy under the PM E-Drive scheme for the procurement of electric commercial vehicles, the Rajya Sabha was informed on Friday.
“As on date, no subsidy has been given to state governments under PM E-Drive scheme for procurements of electric buses, ambulances and electric trucks,” HD Kumaraswamy, union minister for heavy industries, said in a written reply to a question asked by Madan Rathod and Aditya Prasad, Members of Parliament representing the Bharatiya Janata Party in the Rajya Sabha.
On Sept. 11, 2024, the central government approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement, or PM E-Drive scheme, to support the procurement of 14,028 electric buses with a total outlay of Rs 4,391 crore. A further Rs 500 crore each has been set aside for electric trucks and hybrid ambulances.
Additionally, the central government has formulated a vehicle scrapping policy to incentivise the creation of an ecosystem to phase out old, unfit, and polluting vehicles across the country, Kumaraswamy said in the written reply.
A so-called “certificate of deposit” is issued against the scrapped vehicle, which can then be used to claim a concession on the motor vehicle tax levied on the purchase of a new vehicle. The concession, set at 15% for transport vehicles and 25% for non-transport vehicles, is available for up to eight years and 15 years, respectively.
