The Ministry of Heavy Industries (MHI) has officially extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme by two years, pushing its closing date from 31 March 2026 to 31 March 2028. Announced by Additional Secretary Hanif Qureshi, the decision delivers much-needed policy certainty to India’s electric vehicle (EV) sector.
According to the gazette notification, the extension will benefit various EV segments, especially e-trucks, which recently received detailed operational guidelines. These vehicles will also take advantage of localisation incentives under the Phased Manufacturing Programme (PMP).
Initially launched on 29 September 2024 with a ₹10,900 crore allocation for two years, the scheme will now run from 1 October 2024 to 31 March 2028 while retaining the same financial outlay. The deadline for registered e-2Ws, e-rickshaws, e-carts, and e-3Ws (L5) remains 31 March 2026.
Heavy Industries Minister H.D. Kumaraswamy confirmed that the scheme’s total payouts will remain capped at ₹10,900 crore. Once funds for the scheme or any subcomponent are exhausted, no further claims will be processed, even before the new end date.
Boost to EV Adoption and Manufacturing
Officials said the move aims to accelerate EV adoption, expand charging infrastructure, and strengthen India’s domestic EV manufacturing ecosystem. The added time also addresses concerns over the scheme ending too soon, giving manufacturers, fleet operators, and investors greater confidence.
The extension is expected to especially benefit e-trucks, e-buses, and testing agencies that face longer development timelines. E-trucks, still at an early stage, require additional time before full-scale production.
For e-buses, ₹4,391 crore has been allocated to support 14,028 units, with funds released in phases over 18 months from March 2026. Meanwhile, testing agency equipment procurement will require more time for tendering, evaluation, and commissioning to ensure safety and quality standards.
With this extension, the PM E-DRIVE scheme is set to give India’s EV industry a stronger push toward clean and sustainable mobility.