India has approved a $1.3 billion incentive scheme for electric vehicles adoption, aiming to cut pollution and promote cleaner energy. The PM E-DRIVE initiative will offer subsidies for e-two wheelers, e-three wheelers, e-ambulances, and e-trucks. Read ahead…
India’s cabinet has approved a major scheme to boost electric vehicle (EV) adoption with a budget of 109 billion rupees ($1.3 billion). The new initiative called the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE), aims to cut pollution and support cleaner fuels.
The new incentive scheme for electric vehicles will provide 36.79 billion rupees in subsidies for various EVs, including e-two-wheelers, e-three-wheelers, e-ambulances, and e-trucks.
For the first time, 5 billion rupees will be allocated specifically for deploying e-ambulances. Additionally, 5 billion rupees will be used to incentivize the replacement of old, polluting trucks with electric trucks. Companies will also receive extra subsidies for scrapping old trucks.
The scheme’s impact on cars is still unclear. However, it is confirmed that 43.91 billion rupees will be set aside for public transport agencies to purchase 14,028 electric buses.
Transport Minister Nitin Gadkari has called on carmakers to establish vehicle scrapping centers. He believes this will help remove polluting vehicles from the roads and potentially increase vehicle sales by 18-20%.
Currently, electric vehicles make up less than 2% of the 4.2 million cars sold in India each year. The government aims to increase this number to 30% by 2030. The new incentive scheme for electric vehicles will also focus on improving the EV charging infrastructure and encouraging the testing of new technologies.
The primary goal of the scheme is to speed up EV adoption by offering upfront incentives and establishing crucial charging infrastructure. This initiative is a significant step towards India’s commitment to cleaner energy and reduced pollution.
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