The Faster Adoption and Manufacturing of Hybrid and EV (FAME) policy, which has subsidized the purchase of over 1.6 million electric vehicles in India since 2015, entered its third phase on Wednesday with the announcement by the Center of a ₹10,900 crore electric vehicle subsidy scheme called PM E-Drive.
The new plan eliminates subsidies for electric and hybrid vehicles in an effort to increase the usage of electric buses. Convergence Energy Solutions Ltd (CESL), a star-run firm, will aggregate demand for 14,028 electric buses across nine major cities in order to provide incentives for their deployment under the PM E-Drive plan.
Government EV Subsidy program for e-bus
The development of a vast infrastructure for charging will be another goal of the E-Drive program.
In addition to electric buses, ₹2,679 crore would be allocated for the subsidy of 316,000 electric three-wheelers and 2.48 million electric two-wheelers.
In addition, ₹500 crore has been set aside for each of electric trucks and hybrid ambulances, with the goal of promoting EV adoption for the first time in important service industries and the commercial vehicle market. At a Cabinet briefing, Ashwani Vaishnav, the Union Minister for Information and Broadcasting, stated, “We need total reliability in the vehicles. For ambulances, we are going to give incentives to hybrids.”
Only trucks with a scrapping certificate from a vehicle scrapping center that has been certified by the road ministry will be eligible for rewards under this plan. Pointing out how crucial PSM is to the initiatives’ ability to obtain funding and draw in the private sector.
10,000 air-conditioned electric buses will be launched in tier-2 and tier-3 cities under the PM-eBus Sewa Scheme, which is a public-private partnership model. The vote-on-account as of August allotted ₹541 crore for infrastructure and bus operations in 75 cities.
