PM E-DRIVE: E-Bus Allocation, E-Vouchers and FAME-II Contrast
Why in the news
Every one of the 14,028 e-buses planned under PM E-DRIVE has now been tendered and allocated. With procurement done, the Centre is exploring another scheme to grow the national e-bus fleet, and attention has turned to the difficulty of keeping such a large electric fleet running.
Key facts
- Full name: PM E-DRIVE, expanded as PM Electric Drive Revolution in Innovative Vehicle Enhancement, started on 1 October 2024.
- Predecessor: FAME-II, which ended in 2024.
- Goal: 30% EV penetration by 2030, concentrating on public transport and commercial vehicles.
- Segments backed: buses, trucks, and two- and three-wheelers, since these add most to urban pollution.
- Fleet milestone: 14,028 e-buses fully tendered and allocated.
- Scheme period: 2024 to 2026/28.
FAME-II versus PM E-DRIVE
| Aspect | FAME-II | PM E-DRIVE |
|---|---|---|
| Main aim | Create the market and awareness | Mass adoption and infrastructure scale-up |
| Electric cars | Covered in early phases | Excluded; helped only by 5% GST |
| Subsidy route | Discount given by dealer | Aadhaar-authenticated e-voucher |
| New segments | Limited attention | Ambulances and e-trucks added |
| Charging target | About 7,000 stations | About 72,300 fast charging points |
About the design
- FAME is described as the spark that started electric mobility; PM E-DRIVE aims to turn it into a mass movement through targeted, data-led support instead of broad subsidies.
- E-voucher: at purchase the buyer gets an Aadhaar-linked voucher on mobile via the scheme portal. Buyer and dealer both sign it, and the subsidy then goes to the manufacturer, which curbs leakage.
- No support for e-cars: the segment is seen as nearly self-sustaining, given a tax gap of 5% GST on EVs against up to 40% on petrol and diesel cars.
- Phased-out incentive: ₹5,000/kWh in FY25 drops to ₹2,500/kWh in FY26, pushing manufacturers to cut costs through scale.
Exam angle
- Successor of: FAME-II. Subsidy tool: Aadhaar-authenticated e-voucher.
- Newly included: electric ambulances and e-trucks; e-truck buyers must furnish proof of scrapping an old vehicle, issued by an RVSF (Registered Vehicle Scrapping Facility).
- Numbers to remember: 14,028 buses, 30% by 2030, 72,300 charging points, 5% GST.