The central government has unveiled draft guidelines for the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM eDRIVE) scheme, a ₹2,000 crore initiative aimed at transforming India’s electric vehicle (EV) charging ecosystem. Under this scheme, subsidies of up to 80%—and in exceptional cases, 100%—will be provided to develop upstream infrastructure for public fast charging stations across the country.
The initiative, replacing the Faster Adoption and Manufacturing of [Hybrid &] Electric Vehicles in India (FAME) schemes, focuses on creating a robust and widespread charging network to support the growing adoption of EVs, particularly two- and three-wheelers.
Focus on Fast Charging Stations Across India
The PM eDRIVE scheme aims to install 48,400 fast chargers for electric two- and three-wheelers, with ₹581 crore earmarked for these deployments, and 22,100 chargers for other vehicle categories. The draft guidelines issued by the Ministry of Heavy Industries (MHI) emphasize the need for “upstream infrastructure,” which includes behind-the-meter components such as transformers and grid connections.
While the base subsidy is set at 80%, additional funding of up to 100% can be provided in extraordinary circumstances, covering critical power infrastructure to ensure seamless operation of charging stations. The government has encouraged state governments and central ministries to conduct feasibility studies to identify suitable locations for these stations, focusing on factors like traffic patterns, commercial space proximity, power supply, and grid upgrade potential.
Ministries including the Ministry of Power, the Ministry of Petroleum and Natural Gas (MoPNG), and the Ministry of Road Transport and Highways (MoRTH) have been called upon to submit proposals for site development. A technical committee led by an Additional or Joint Secretary from the MHI will review these proposals, with representatives from NITI Aayog, the Ministry of Power, and the Automotive Research Association of India (ARAI) contributing insights.
Streamlined Funding and Incentive Disbursement
The guidelines outline a three-phase disbursement process for subsidies. Once tenders are issued, 30% of the total sanctioned amount will be released as a mobilisation advance. Another 40% will be disbursed upon deployment of EV Supply Equipment (EVSE) as per bid requirements, and the remaining 30% will follow the successful commercial operation of the charging stations.
The incentives will be based on a benchmark upstream cost per kW set by the Bureau of Energy Efficiency (BEE), with periodic updates. This ensures cost-effectiveness while promoting high-quality infrastructure development. Importantly, the upstream assets will remain under the ownership of the respective state distribution companies (Discoms).
Nationwide Collaboration for EV Growth
The scheme emphasizes the collaborative role of both state and central entities. Feasibility studies will guide the identification of charging station locations, while the Project Implementation and Sanctioning Committee (PISC) will oversee the technical and administrative processes. Upon approval, the participating states or ministries will begin tendering processes, paving the way for project implementation.
The PM eDRIVE initiative is expected to provide a major push to India’s EV ecosystem, enabling faster adoption by addressing key challenges in charging infrastructure. With its focus on robust planning, inter-ministerial collaboration, and financial incentives, the scheme marks a significant step toward making EV adoption more accessible and sustainable across the country.
This ambitious plan aligns with the government’s vision of achieving net-zero emissions by 2070, while supporting India’s burgeoning EV market.
