"Cabinet Approves ₹14,000 Crore Green Mobility Initiative"

In a significant move to promote green mobility, the Union Cabinet on Wednesday approved a ₹14,335 crore initiative aimed at boosting electric mobility across India. The plan includes a ₹10,900 crore PM E-DRIVE scheme for electric two- and three-wheelers, and ₹3,435 crore to ensure the uninterrupted operation of over 38,000 electric buses in cities and towns.

Union Minister Ashwini Vaishnaw announced the new PM E-DRIVE scheme, which will replace the FAME initiative and run for two years. The scheme offers ₹3,679 crore in subsidies to incentivize the purchase of electric two- and three-wheelers, e-ambulances, and e-trucks, supporting nearly 25 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 e-buses. Additionally, ₹500 crore has been allocated for deploying e-ambulances.

To further encourage the shift towards electric vehicles (EVs), ₹4,391 crore has been allocated for the procurement of 14,028 e-buses by public transport agencies in major cities, including Delhi, Mumbai, and Bangalore. Inter-city and inter-state e-buses will also be supported under the plan.

Addressing EV buyers’ concerns about charging infrastructure, the scheme proposes the installation of over 70,000 fast chargers, including 22,100 for electric four-wheelers, 1,800 for e-buses, and 48,400 for electric two- and three-wheelers, with an additional ₹2,000 crore allocated for this.

Prime Minister Narendra Modi hailed the decision, tweeting, "PM E-DRIVE Scheme will boost green mobility and help us build a sustainable future."

The government also introduced an e-voucher system, where EV buyers can avail subsidies through Aadhaar-authenticated vouchers. This will ensure transparency and prevent misuse of the incentives.

In addition, the Cabinet approved the ‘PM-eBus Sewa-Payment Security Mechanism (PSM)’ scheme, which will support the procurement and operation of e-buses by public transport agencies until 2028-29, with a focus on sustainable transportation.

ET