PM E-DRIVE Scheme Extended Till 2028

New Delhi, Aug 8 (PTI) The government has extended the validity of the Rs 10,900-crore PM E-DRIVE Scheme by two years till March 2028 for certain categories of vehicles including electric buses, e-ambulances and e-trucks.

According to a gazette notification on the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, the provisions of the scheme will now be in effect till March 2028 instead of March 2026.

However, the terminal date for registered e-2W (electric two-wheeler), registered e-rickshaws & e-cart and registered e-3W (L5) shall be 31st March 2026, as per the notification.

"This is a fund limited Scheme. Total payout under the Scheme shall be limited to the scheme outlay of Rs 10,900 crore," the notification said.

It further stated that in case the funds for the Scheme or its relevant sub-components are exhausted prior to the terminal date of the Scheme i.e. 31st March 2028, then the Scheme or its relevant sub-components will be closed accordingly and no further claims will be entertained.

Saurabh Agarwal, Partner & Automotive Tax Leader, EY India, said the extension of the PM E-Drive scheme till March 2028 is a timely and focused move by the government to support electric mobility in high-impact areas like electric buses, trucks, and ambulances.

"These vehicles play an important role in public transport and essential services, and increasing their adoption will help improve air quality, reduce emissions and increase adoption of electric vehicles across all cities in India.

Keeping the same budget of Rs 10,900 crore and using a first-come, first-serve model will promote healthy competition and push manufacturers and operators to act quickly," he added.