The Government of India, through the Ministry of Heavy Industries (MHI), has launched a series of schemes to accelerate the adoption of Electric Vehicles (EVs) and develop a robust domestic manufacturing ecosystem. These initiatives are aligned with the Aatma Nirbhar Bharat vision and global climate commitments. The Electric Mobility Promotion Scheme (EMPS) 2024, now subsumed into the PM E-DRIVE Scheme, represents the latest evolutionary step in this journey.
Evolution of EV Promotion Schemes
The shift from FAME to EMPS and eventually to PM E-DRIVE highlights the government’s transition from pilot-based testing to large-scale, comprehensive support for diverse EV segments.
| Scheme | Period | Key Focus |
| FAME-I | 2015–2019 | Pilot projects, technology viability, basic demand incentives. |
| FAME-II | 2019–2024 | Scaling demand for e-2Ws, e-3Ws, e-buses; charging infrastructure. |
| EMPS 2024 | 2024 (April–July) | Focused bridge scheme for e-2W and e-3W adoption. |
| PM E-DRIVE | 2024–2026 | Comprehensive support for e-2Ws, e-3Ws, e-trucks, e-ambulances, and e-buses. |
Electric Mobility Promotion Scheme (EMPS) 2024
EMPS 2024 was introduced as a transitional, fund-limited scheme to maintain momentum in the EV sector following the conclusion of FAME-II.
- Objective: Accelerate the adoption of electric two-wheelers (e-2Ws) and three-wheelers (e-3Ws) and strengthen the EV manufacturing supply chain.
- Duration: Initially effective from 1st April 2024 to 31st July 2024.
- Budgetary Outlay: INR 500 Crore.
- Key Eligibility: Incentives were restricted to vehicles fitted with “advanced batteries” to discourage low-quality technology.
- Status: The scheme has been subsumed into the larger PM E-DRIVE Scheme to ensure continuous support for the ecosystem.
PM E-DRIVE Scheme: The Current Flagship Initiative
Launched on 29th September 2024, the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme is the current vehicle for driving electric mobility in India.
- Budgetary Outlay: INR 10,900 Crore.
- Target: Subsidy support for over 28 lakh electric vehicles.
- Core Components:
- e-2W/e-3W Support: Demand incentives for individuals and commercial users.
- e-Buses: Procurement of 14,028 e-buses for public transport agencies.
- e-Ambulances: A new initiative to deploy electric ambulances for patient transport.
- e-Trucks: Incentivizing the adoption of electric trucks for logistics, linked to the scrapping of old vehicles.
- Charging Infrastructure: Allocation of INR 2,000 Crore to install thousands of fast chargers for various vehicle categories.
Strategic Features and Implementation
The Ministry of Heavy Industries employs several mechanisms to ensure the effectiveness and transparency of these schemes.
Phased Manufacturing Programme (PMP)
- The government mandates PMP to promote the indigenization of critical EV components.
- It aims to reduce dependency on imports and build a resilient domestic supply chain for motors, batteries, and controllers.
Demand Incentive Mechanism
- Incentives are provided as an upfront reduction in the purchase price, which is later reimbursed to the Original Equipment Manufacturer (OEM) by the government.
- To prevent exploitation, beneficiaries are generally limited to one EV of a specific category.
Quality and Safety Standards
- Testing Agencies: Vehicles must obtain certification from designated testing agencies to prove compliance with performance and battery safety standards.
- Warranty: OEMs are required to provide a comprehensive warranty (including the battery) to ensure consumer confidence and after-sales service longevity.
Key Trivia for Prelims
- Administrative Agency: The schemes are implemented and monitored by the Ministry of Heavy Industries.
- Targeting: While FAME-II and EMPS focused heavily on demand generation for personal and commercial 2/3 wheelers, PM E-DRIVE has expanded to include high-impact public transport and heavy logistics (e-buses, e-trucks).
- Integration: The PM E-DRIVE scheme is valid until 31st March 2026, creating a clear policy roadmap for manufacturers and consumers.
- Technology Neutrality: The shift in incentives is moving toward “advanced battery” criteria, favoring high-energy density and safety-compliant chemistries (e.g., Lithium-ion).