MHI Notifies PM E-DRIVE Incentives for Electric Ambulances with INR 500 Crore Outlay
The Ministry of Heavy Industries has notified demand incentives and localisation norms for electric ambulances under the PM E-DRIVE Scheme, allocating INR 500 crore to support 3,811 vehicles over FY27 and FY28.
June 19, 2026. By Mrinmoy Dey
Under the scheme, three categories of electric ambulances will be eligible for demand incentives: Patient Transport Vehicles (PTV) or Type-B ambulances, Basic Life Support (BLS) ambulances or Type-C, and Advanced Life Support (ALS) ambulances or Type-D. These vehicles must comply with Automotive Industry Standards AIS-125 (Part 1), AIS-145 for safety features and AIS-038 (Rev 2) governing electric powertrains, along with other standards prescribed by the Ministry of Road Transport and Highways (MoRTH) and the Ministry of Health and Family Welfare (MoHFW), stated the MHI notification.
The Centre has also extended eligibility for demand incentives to departments of the Central and State governments, as well as their agencies and public sector undertakings. The incentives will be available in addition to any financial assistance availed under the National Health Mission (NHM) or other government schemes.
However, the notification clarifies that eligibility under PM E-DRIVE does not automatically qualify vehicles for deployment under the National Ambulance Service (NAS) or NHM, and procuring agencies must separately ensure compliance with applicable operational guidelines.
As per the notification, the demand incentive for electric ambulances will be the lower of two values – INR 30,000 multiplied by the battery capacity in kWh or 35 percent of the vehicle's ex-factory price. Any additional components, systems or equipment installed in the ambulance will have to be invoiced separately and cannot be included in the ex-factory price for incentive calculation.
The government has set an indicative target of supporting 3,811 electric ambulances over two financial years, including 1,797 units in FY 2026-27 and 2,014 units in FY 2027-28. The total financial support allocated by MHI for the segment stands at INR 500 crore.
The notification also lays down performance and efficiency criteria for eligible vehicles. Electric ambulances based on M1 and M2 vehicle categories must offer a minimum range of 140 km, a top speed of at least 70 kmph and specified energy consumption limits depending on vehicle size. For larger M3 category ambulances, the minimum range requirement remains 140 km, while vehicles must also meet parameters related to energy efficiency, acceleration and gradeability.
To ensure reliability, the government has mandated a minimum warranty of five years or 1.25 lakh kilometres, whichever is earlier, for the battery, traction motor and the vehicle itself across all categories of pure electric ambulances.
The notification further introduces a phased manufacturing programme (PMP) aimed at promoting domestic value addition in electric ambulances. Components such as HVAC systems, electric compressors for brakes, charging inlets and traction battery packs will have to be manufactured domestically. Import of battery modules has been prohibited under the scheme.
For other critical components such as Battery Management Systems (BMS), DC-DC converters, Vehicle Control Units (VCUs), traction motors, motor controllers and on-board chargers, phased localisation timelines have been prescribed. While certain components may be imported until specified cut-off dates, domestic manufacturing requirements will gradually become mandatory between September 2026 and March 2027, depending on the vehicle category.
Additionally, the notification bars import of complete knocked-down (CKD) kits comprising PMP components and other vehicle parts from a single supplier. However, medical equipment installed in electric ambulances has been kept outside the scope of the localisation mandate.
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