The government is set to extend subsidies for the sale of the cargo category of electric three-wheelers (e-3Ws of L5 category) under the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE).
However, there is a catch. Since the target of the first year has been achieved, as per the Scheme, the incentives of the second batch of vehicles (supposed to be for the next year), the subsidies will be half of the first year and will be capped at ₹25,000 per vehicle, sources in the know said.
The e-3Ws L5 under this Scheme, registered on the Vahan (Ministry of Transport) portal after the cut-off date which is November 7, 2024 (when around the first 80,546 number was reached) will be eligible for an incentive at a reduced rate of ₹2,500 per kWh, capped at ₹25,000 per vehicle subject to the limit of 1,24,846 units, the sources said.
“The incentive which was earlier applicable for the 1,24,846 e-3Ws L5 for FY2025-26 from April 2025, is now made available from November 8, 2024. This cap of 1,24,846 e-3Ws L5, earlier applicable for e-3W L5 registered in FY2025-26 shall now be applicable for the period from November 2024 (cut-off date) till the target number of vehicles is reached, but not later than March 31, 2026,” an official at Ministry of Heavy Industries (MHI), said.
Likewise, in the case of electric two-wheelers (e-2Ws), the target number of vehicles which is 10,64,000 for FY2024-25, is likely to be achieved by mid-February 2025.
“Once this target is reached, the subsidy shall be reduced from the cut-off date as per the rates applicable for FY2025-26 which is ₹2,500 per kWh, capped at ₹5,000 per vehicle,” the official said adding that a draft letter has been sent to all the original equipment manufacturers (OEMs) eligible under the Scheme.
PM E-Drive Scheme was launched on October 1 with a budget outlay of ₹10,900 crore for two years for vehicle categories including e2Ws, e3Ws, e-ambulances, e-trucks e-buses, and PM-eBus Sewa Payment Security Mechanism to accelerate the adoption of EVs across the country.
Under the Scheme, the subsidies for e2Ws were fixed based on battery power at ₹5,000 per kilowatt hour (kWh), but the overall incentive will not exceed ₹10,000 in the first year. In the second year, it will be halved by ₹2,500 per kilowatt hour, and the overall benefit will not exceed ₹5,000.
Similarly, the e-rickshaw subsidy of ₹25,000 in the first year was fixed and ₹12,500 in the second year. For the L5 category of e-3W, it was fixed at ₹50,000 in the first year and reduced to ₹25,000 in the second year.
