Challenges Faced By PM E-drive Scheme

GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES RAJYA SABHA UNSTARRED QUESTION NO. 2327 ANSWERED ON 07.08.2026 CHALLENGES FACED BY PM E-DRIVE SCHEME

2327. DR. LAXMI KANT BAJPAI:

Will the Minister of Heavy Industries be pleased to state:

(a) whether PM E-DRIVE scheme is facing significant hurdles, which include exclusion of private electric cars and light commercial vehicles by dropping the subsidies, favour of funding only to State-run buses, ignoring the massive private bus sector, heavy reliance on imported EV battery materials, delayed power connections slowing down setting up of EV charging stations, charging infrastructure heavily clustered in cities ignoring rural areas, rural buyers facing problems with mandatory Aadhaar-linked e-voucher system; and

(b) if so, the measures being taken by Government to remove these hurdles impacting PM E- DRIVE Scheme? ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

(a) & (b): The PM E-DRIVE Scheme is not facing the hurdles as mentioned in the question.

The Scheme has been designed to accelerate the adoption of electric mobility in the country through demand incentives for eligible electric vehicles, grants to State Transport Undertakings

(STUs) for deployment of electric buses, establishment of public EV charging infrastructure on a pan-India basis, including rural areas, and upgradation of vehicle testing agencies. The scope and components of the Scheme have been approved by the Government keeping in view the objective of promoting sustainable and inclusive electric mobility.

The support for private electric cars, light commercial vehicles and buses deployed by the private sector is available under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry (PLI-Auto). Further, the Government is promoting domestic manufacturing of electric vehicles, advanced automotive technologies and the battery ecosystem through various policy initiatives, including the PLI-Auto and PLI-ACC Schemes, to strengthen the EV value chain.

Assistance has also been approved for installation of public EV charging stations across the country, including rural areas, based on proposals received from implementing agencies. The Scheme is implemented through a transparent digital portal with Aadhaar-based e-voucher generation to ensure authenticity of beneficiaries, prevent duplication and enable direct and efficient disbursement of demand incentives.

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