EV Sales to Get Massive Boost, Government to Give Subsidy of Rs 14,335 Crore

To increase the sales of electric vehicles (EV) in the country, the central government has approved two schemes worth Rs 14,335 crore. Its aim is to promote EVs including buses, ambulances and trucks and reduce pollution. These schemes include PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) and PM-eBus Sewa-Payment Security Mechanism (PSM).

About Rs 10,900 crore will be allocated for PM E-DRIVE and about Rs 3,435 crore for PSM. Information and Broadcasting Minister Ashwini Vaishnaw said that PM E-DRIVE can be very helpful in reducing pollution. Under this scheme, subsidy / demand incentive of Rs 3,679 crore will be provided for electric two-wheelers, electric three-wheelers, electric ambulances and electric trucks. This scheme will help in purchasing 24.79 lakh electric two-wheelers, about 3.16 lakh electric three-wheelers and 14,028 electric buses.

An official press release states that under this scheme, the Ministry of Heavy Industries will introduce e-vouchers to provide demand incentives to EV buyers. On purchasing an EV, an e-voucher will be generated for the buyer on the portal of this scheme. About Rs 500 crore has been allocated for electric ambulances under PM E-DRIVE. This is an effort to promote the use of electric ambulances for comfortable transportation of patients. Discussions will also be held with the stakeholders concerned for the performance and safety parameters of electric ambulances.

Apart from this, Rs 4,391 crore will be made available for the purchase of electric buses by state transport corporations and public transport agencies. For this, CESL will assess the demand in big cities with a population of more than 40 lakh. These cities include Delhi, Mumbai, Kolkata, Chennai, Surat, Ahmedabad, Pune and Hyderabad. Diesel-powered trucks are one of the major causes of pollution. Funds have also been provided in this scheme to promote electric trucks. The government plans to rapidly increase the share of EVs in total automobile sales by 2030. The number of electric cars has increased significantly in the last few years.