HomePolicies & Regulations ›Govt. Revises PM E-DRIVE Scheme, Updates Incentives for E-Rickshaws, E-Carts, and L5 E-3 Wheelers

Govt. Revises PM E-DRIVE Scheme, Updates Incentives for E-Rickshaws, E-Carts, and L5 E-3 Wheelers

The Ministry of Heavy Industries revises PM E-DRIVE incentives, adjusting caps and per-kWh support for e-rickshaws, e-carts, and L5 e-3 wheelers, with changes effective immediately and funds allocated for FY 2024-26.

August 15, 2025. By EI News Network

The Ministry of Heavy Industries has issued an amendment to the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, originally notified on September 29, 2024, and subsequently updated on November 25, 2024.

The revisions aim to adjust incentives and vehicle caps for registered e-rickshaws, e-carts, and L5 category e-3 wheelers, effective from the date of publication in the official gazette.

Under the updated scheme, registered e-rickshaws and e-carts will have a maximum of 39,034 vehicles eligible for incentives. The support for FY 2024-25 is set at INR 5,000 per kWh, capped at INR 25,000 per vehicle, while for FY 2025-26, it will be INR 2,500 per kWh, capped at INR 12,500 per vehicle. The total fund support for these vehicles from the Ministry is INR 2.55 crore.

For registered L5 e-3 wheelers, the maximum number of supported vehicles is 80,546 for registrations between April 1, 2024, and November 7, 2024, and 2,08,263 for registrations from November 8, 2024, to March 31, 2026. Incentives for these vehicles are INR 5,000 per kWh (capped at INR 50,000 per vehicle) for FY 2024-25 and INR 2,500 per kWh (capped at INR 25,000 per vehicle) for FY 2025-26. The total outlay for L5 e-3 wheelers is INR 857 crore.

The scheme clarifies that the proposed incentives per kWh are subject to periodic review based on reductions in vehicle costs and shall be limited to the specified amount or 15 percent of the ex-factory price, whichever is lower. Additionally, the financial outlay under EMPS-2024 has been subsumed within the PM E-DRIVE scheme.

It may be mentioned that the government’s PM-Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE), launched in September 2024 with a INR 10,900 crore outlay, is designed to fast-track India’s electric mobility transition. The scheme covers e-2Ws, e-3Ws, e-ambulances, e-trucks, and e-buses, while funding 72,300 charging points and upgrading testing facilities. Of the total budget, INR 3,679 crore is allocated for demand incentives and INR 7,171 crore for e-buses, infrastructure, and testing. It targets support for 24.8 lakh e-2Ws, 3.2 lakh e-3Ws, and 14,028 e-buses. 
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