Govt Extends PM E-DRIVE EV Scheme to 2028, Aiding E-Trucks, Buses

The Ministry of Heavy Industries has extended the tenure of the PM E-DRIVE scheme by two years, from 31 March 2026 to 31 March 2028, according to a recent notification. The move brings relief to India’s electric vehicle (EV) sector. The announcement followed a clarification from Hanif Qureshi, additional secretary at the Ministry of Heavy Industries (MHI).

The official gazette notification is expected to benefit several EV segments, particularly e-trucks, which received detailed guidelines last month. These vehicles will gain from localisation provisions under the Phased Manufacturing Programme (PMP).

The amendment also resolves uncertainty surrounding the scheme, which was originally notified on 29 September 2024 with an outlay of ₹10,900 crore for two years. The scheme will now run from 1 October 2024 to 31 March 2028 within the same outlay. The terminal date for registered e-2Ws, registered e-rickshaws and e-carts, and registered e-3Ws (L5) remains 31 March 2026.

Additionally, Minister of Heavy Industries H.D. Kumaraswamy clarified that the latest notification caps the scheme’s total payouts at ₹10,900 crore. If funds for the scheme or any sub-component are exhausted before 31 March 2028, they will be closed and no further claims accepted, he said.

Impact Of The Scheme

Minister of Heavy Industries H.D. Kumaraswamy, further commenting on the notification, clarified that the duration of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme has been extended from two years to four years. 

Officials also noted that the extension aims to accelerate EV adoption, expand charging infrastructure, and develop India’s EV manufacturing ecosystem. The move ends concerns about the scheme ending soon and gives industry players clarity and confidence to continue toward cleaner transport.

The Union minister’s latest extension could prove beneficial, particularly for e-trucks, e-buses, and testing agencies, which face specific challenges. It can also support e-trucks, which are still in a nascent stage, with large-scale production expected to take more time.

Given this, full-scale commercial production is likely to take longer. Shedding some clarity on the impact of the scheme on electric vehicles, the minister stated, "The e-buses, backed by ₹4,391 cr for 14,028 units, require a post-selection process beginning in March 2026, with grant disbursements linked to milestones over 18 months."

Furthermore, on the electric vehicle procurement, the minister said, "On procurement of testing agency equipment will require more time for tendering, evaluation, procurement, and commissioning to maintain quality and safety standards across these segments."