PM E-DRIVE Scheme and 100% Subsidy Initiative

Context

The Government of India issued guidelines on September 28, 2025, under the PM E-DRIVE Scheme to promote electric vehicles (EVs), which provide up to 100% subsidy for EV charging stations, battery swapping stations, and battery charging stations.

PM E-DRIVE: 100% Subsidy Initiative

• A budget of ₹10,000 crore has been allocated under the PM E-DRIVE Scheme (Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement), of which ₹2,000 crore is for charging infrastructure.
  • The scheme began on October 1, 2024, and will run until March 31, 2026.
  • It aims to accelerate EV adoption, promote local manufacturing, and reduce dependence on fuel imports.
  • The subsidy scheme specifically encourages the installation of charging infrastructure to reduce range anxiety.
• The new guidelines provide up to 100% subsidy for EV charging stations, battery swapping stations, and battery charging stations.

Features

• Scope of subsidy:
  • Upstream infrastructure: This includes distribution transformers, low-/high-voltage cables, distribution boxes, circuit breakers/isolators, mounting structures, fencing, and civil work.
  • EV supply equipment (EVSE): This includes EV chargers and charging guns. In some cases, EVSE costs will also be subsidized.
  • 100% subsidy in government buildings, schools, hospitals, and residential colonies with public access.
  • 80% subsidy on upstream infrastructure and 70% subsidy on EVSEs in high-traffic locations (railway stations, airports, bus depots, metro stations, toll plazas).
• Eligible entities:
  • Central government ministries (Petroleum and Natural Gas, Road Transport and Highways, Health, Energy, Housing and Urban Affairs, Railways, Civil Aviation, Steel, Ports), Central Public Sector Enterprises (CPSEs), and State/Union Territory PSUs.
  • Nominal entities: IOCL, BPCL, HPCL, NHAI, AAI, SAIL, CONCOR, CESL, and Metro Rail Corporations.
  • These entities will aggregate demand through nodal agencies and identify locations for charging stations.
• Location priority:
  • Cities with a population of more than 1 million as per Census 2011.
  • Smart cities notified by the Ministry of Housing and Urban Affairs (MoHUA).
  • Satellite cities connected to seven major metros (Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Ahmedabad).
  • Capitals of all states/union territories and cities identified under the National Clean Air Programme (NCAP).
  • Inter-city and inter-state highways, which will be selected in consultation with the Ministry of Road Transport and Highways (MoRTH).
• Implementation: Entities can install charging stations directly or appoint a charge point operator (CPO).

Impact on the EV market

• Increased confidence: Widespread availability of charging stations will boost consumerconfidence, leading to increased demand for EVs.
• Market growth: EV sales in India will accelerate, especially in e-2W (10% market share target by 2026) and e-3W (15% target).
• Economic benefits: Boost local manufacturing, job creation, and reduced dependence on fuel imports.
• Environmental benefits: Reduced carbon emissions, which will support the Net-Zero 2070 target.
• Industry development: Incentives for businesses (CPOs, equipment manufacturers) related to charging infrastructure.