Scheme (under Ministry of Heavy Industries) is approved with outlay of Rs 10,900 crore for 2 years for promotion of electric mobility in India.

• It is said to replace the flagship Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) programme. 
• Additionally, Cabinet has also approved PM-eBus Sewa-Payment Security Mechanism (PSM) scheme for procurement and operation of e-buses.

Major Components of PM E-DRIVE Scheme

• Subsidies/Demand incentives to incentivize e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs.
• Installation of Electric vehicle public charging stations (EVPCS) in selected cities and on selected highways.
• Provision for procurement of e-buses by public transport agencies through Convergence Energy Services Limited (CESL).
• Test agencies to be modernized to deal with the new and emerging technologies to promote green mobility.

Significance of the scheme

• Promote the deployment of e-trucks in the country.
• Promotes mass mobility by supporting means of public transportation
• Reduce the environmental impact of transportation and improve air quality
• Incorporates phased manufacturing programme (PMP) which encourages domestic manufacturing and supply chain.

Challenges in promoting EV

• Much of India's electricity is generated from burning coal.
• Underdeveloped Charging infrastructure.
• Suboptimal Battery Technology