Why in news?
The Union government has launched the Pradhan Mantri E‑Drive scheme to promote adoption of electric vehicles (EVs). The initiative provides financial incentives for buyers and aims to strengthen the charging infrastructure across India.
Background
- The transport sector is a major contributor to air pollution and carbon emissions. EVs offer a cleaner alternative, but their upfront cost and lack of charging stations deter buyers.
- The earlier FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme focussed mainly on two‑ and three‑wheelers. The new E‑Drive scheme expands support to heavy vehicles and includes infrastructure development.
Key provisions
- The scheme, with an outlay of over ₹10,900 crore, runs until 2028. It provides subsidies to manufacturers and direct incentives to consumers based on battery capacity (per kWh).
- Eligibility covers e‑two‑wheelers, e‑three‑wheelers, e‑cars, e‑buses, freight vehicles and even electric ambulances. Special incentives encourage procurement of electric buses for public transport.
- Funds are allocated for setting up fast‑charging stations, battery testing facilities and the development of energy storage technologies.
Significance
- By lowering the cost of EVs, the scheme aims to accelerate their adoption, reducing air pollution in cities and cutting oil imports.
- Investment in charging infrastructure will create jobs, support ancillary industries and help integrate renewable energy into the grid.
- The scheme supports India’s commitments under the Paris Agreement to reduce greenhouse‑gas emissions intensity and transition to clean energy.
Challenges
- Manufacturing of batteries and critical components still depends heavily on imports. Developing domestic supply chains is essential for long‑term sustainability.
- Electricity supply in many parts of India is unreliable. Without stable power, charging infrastructure may face utilisation issues.
- Public awareness and trust in EV technology must be built through outreach, training of mechanics and standardisation of parts.
Way forward
- Clear rules for battery recycling and disposal will prevent environmental problems.
- Coordination among central and state governments is required to ensure incentives are accessible and regulations are harmonised.
- Research into solid‑state batteries and alternative chemistries can reduce costs and increase range, making EVs more attractive.