PM E-DRIVE Scheme Approved by Cabinet for Electric Vehicles | UPSC Notes

Recently, the Union cabinet chaired by the Hon'ble Prime Minister of India approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme. This transformative scheme called PM E-DRIVE scheme has an outlay of Rs 10,900 crore over a period of two years for promotion of electric mobility in the country. The proposal for PM E-DRIVE was given by the Ministry of Heavy Industries, Government of India.

India is taking a series of steps in order to curb the emission produced due to combustion of fossil fuels and at the same time reducing its import bills by cutting down the consumption of fossil fuels and adopting new cutting edge technologies and sources of power such as e-Vehicle technology, renewable energy like solar energy, nuclear energy etc. Apart from that emphasizing more on e-vehicle technology will generate employment and also reduce the burden of disease that occurs due to pollution. Climate change can be effectively tackled with initiatives like the PM E-DRIVE scheme. 

Read more about Global Warming and Climate Change!

Objectives of PM E-DRIVE Scheme

The newly approved scheme is expected to add a new chapter in India’s journey towards EV technology development and use it to serve the purpose of economic growth and development. These are the following objectives of PM E-DRIVE Scheme by Ministry of Heavy Industries, Government of India: 

• The scheme seeks to give an accelerated push in the adoption of e-vehicles in India by offering various upfront incentives for their purchase.
• It aims to facilitate the creation of essential charging infrastructure in order to encourage people to purchase electric vehicles. 
• It also aims to reduce the pollution that occurs due to vehicular emission and improve air quality through the promotion of electric vehicles and encouraging public to use mass public transportation.

Know more about the FAME India Scheme!

Features of PM E-DRIVE Scheme

These are the following key features of PM E-DRIVE Scheme:

• Subsidies: The scheme has allocated INR 3,679 crore as a demand incentive to incentivise the purchase of electric 2-wheelers, 3-wheelers (e-3Ws), electric ambulances, trucks, and other emerging EV categories.
• E-Vouchers: In order to create demand, the buyers of e-vehicles will be issued an e-voucher. This e-voucher will be Aadhaar-authenticated and will be sent to the buyer’s registered mobile number after purchasing.
• E-Ambulance: A separate budget of INR 500 crore has been allocated to deploy electric ambulances. It has been done to provide comfortable and environmentally friendly patient transport. 
• E-Buses: In order to encourage the mass public transportation system, INR 4,391 crore has been earmarked for the procurement of around 14,028 e-buses.
• E-Trucks: As trucks are a major contributor to air pollution, this PM E-DRIVE scheme aims to incentivise the transportation sector and for this, INR 500 crore has been allocated in order to promote the deployment of e-trucks.
• Sustainable Charging Infrastructure: Charging infrastructure is one such issue which has created a major roadblock in the development of EV industry in India and thus the PM E-DRIVE scheme is going to address this issue by allocating INR 2,000 crore to install public charging stations (EVPCS) in different cities including metropolitan, Tier- II, Tier III cities with high EV penetration and along selected highways. 
• Modernisation of Testing Facilities: PM E-DRIVE scheme also lays emphasis on developing and modernizing the testing facilities in India. For this, it has provision of providing additional INR 780 crore as a financial incentive to modernize Ministry of Heavy Industries test agencies so that they are well equipped to handle new and emerging green mobility technologies. 

Challenges for PM E-DRIVE Scheme and EV Industry in India

• Lack of Charging Infrastructure: It is creating a major hurdle in promotion and development of EV industry in India. The current charging network in India is sparse, which can lead to range anxiety among potential EV buyers.
• Cost of EV: Price of EVs is high in India due to high battery costs. Although with the government's recent push, prices of various components of EVs are gradually decreasing but they still remain a major barrier. 
• Issues with Batteries: Lifespan and performance of battery including its disposal are a major concern for policymakers to attract potential buyers.
• Limited Range: Range is a major issue in India as EVs available here have a limited driving range on a single charge as compared to their counterparts that run on fossil fuels. This acts as a deterrent for potential EV buyers, especially in cities where there are few charging stations.
• Consumer Perception: Lack of awareness about the potential benefits of purchasing EVs and misconceptions like reliability, performance etc of electric vehicles is affecting the development of electric vehicle market in India.Government Policies and Incentives: While the Indian government has introduced policies to promote EV adoption, there is inconsistency in implementation and a need for more comprehensive and long-term incentives to sustain growth.
• Availability of Raw Materials: India’s EV industry is heavily reliant on specific raw materials which are majorly imported by India for batteries, like lithium and cobalt.
• Supply Chain: Supply chain issues like dependency on imports often lead to supply constraints and volatility in prices of electric vehicles and its components.

Panchamrit (5 Nectar Elements) by India for Combating Climate Change

Hon’ble Prime Minister of India at UNFCCC COP26 Summit held in Glasgow, United Kingdom in 2021 gave this noble concept of Panchamrit meaning five nectar elements inspired from the ancient tradition of India to the world to tackle climate change effectively and efficiently. These are the following five nectar elements proposed by India:

• To Increase non-fossil fuel capacity by 500 GW by 2030. 
• 50% of its energy requirements will come from renewable energy by 2030. 
• To Reduce total projected carbon emissions by 1 billion tonnes from now to 2030. 
• To Reduce carbon intensity of the economy by 45% by 2030, over 2005 levels.
• To achieve the target of net zero emissions by 2070. 

Read more about the Carbon Footprint!

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