MHI Amends PM E-DRIVE; Electric Two-Wheeler Incentive Capped at Rs 5,000 Till FY28

13 August 2026National

The Ministry of Heavy Industries (MHI) amended the PM E-DRIVE Scheme (Prime Minister's Electric Drive Revolution in Innovative Vehicle Enhancement), reducing the incentive for electric two-wheelers (e-2W) to Rs 2,500 per kWh, capped at Rs 5,000 per vehicle, for April 2025-March 2028. The scheme was notified on 29 September 2024 with a total outlay of Rs 11,900 crore and has been extended to 31 March 2028. It promotes faster EV adoption, charging infrastructure and growth of the EV manufacturing ecosystem.

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PM E-DRIVE replaced the earlier FAME-II scheme | Outlay Rs 11,900 crore | Nodal ministry: Ministry of Heavy Industries | Also supports e-buses, e-trucks, e-ambulances and charging stations

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The Ministry of Heavy Industries amended PM E-DRIVE, cutting the electric two-wheeler subsidy to Rs 2,500/kWh capped at Rs 5,000/vehicle through March 2028.

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