Government extends PM E-DRIVE Scheme by two years until March 2028

The authorities has prolonged the validity of the ₹10,900-crore PM E-DRIVE Scheme by two years until March 2028 for sure classes of autos together with electrical 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 impact until March 2028 as a substitute of March 2026.

However, the terminal date for registered e-2W (electrical two-wheeler), registered e-rickshaws & e-cart and registered e-3W (L5) shall be thirty first 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 ₹10,900 crore,” the notification mentioned.

It additional acknowledged that in case the funds for the Scheme or its related sub-components are exhausted previous to the terminal date of the Scheme i.e. thirty first March 2028, then the Scheme or its related sub-components will likely be closed accordingly and no additional claims will likely be entertained.

Saurabh Agarwal, Partner & Automotive Tax Leader, EY India, mentioned the extension of the PM E-Drive scheme until March 2028 is a well timed and targeted transfer by the federal government to help electrical mobility in high-impact areas like electrical buses, vans, and ambulances.

“These autos play an necessary function in public transport and important providers, and rising their adoption will assist enhance air high quality, cut back emissions and improve adoption of electrical autos throughout all cities in India.

Keeping the identical finances of Rs 10,900 crore and utilizing a first-come, first-serve mannequin will promote wholesome competitors and push producers and operators to behave rapidly,” he added.