Evolution of India's Electric Mobility Ecosystem: From FAME to EMPS to PM E-DRIVE

Analysis

India's Electric Mobility Journey: A Chronological Evolution

India's electric mobility policy framework has evolved through a series of progressively targeted interventions aimed at reducing fossil fuel dependence, improving air quality, promoting domestic manufacturing, and supporting the country's Net Zero by 2070 commitment. The evolution can be understood through the transition from FAME India Scheme, to Electric Mobility Promotion Scheme (EMPS) 2024, and subsequently to the comprehensive PM E-DRIVE Scheme.

Phase-I: FAME India Scheme – Laying the Foundation

The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme marked India's first major initiative for electric mobility promotion.The scheme focused on:

• Demand incentives for EV adoption.
• Pilot projects.
• Charging infrastructure development.
• Indigenous technology development.

The objective was to create initial consumer awareness and stimulate demand for electric vehicles.

Phase-II: FAME India Phase-II (2019–2024)

Recognising the need for large-scale adoption, the Government launched FAME India Phase-II from 1 April 2019 with a total outlay of ₹11,500 crore.The scheme focused on:

• Electric Two-Wheelers (e-2W)
• Electric Three-Wheelers (e-3W)
• Electric Four-Wheelers (e-4W)
• Electric Buses (e-Buses)
• Public Charging Infrastructure

A major achievement under the scheme was the sanctioning of 2,636 EV charging stations across 62 cities in 24 States and UTs, helping establish foundational charging infrastructure.

EMPS 2024: The Transitional Bridge

As FAME-II approached completion, the Government introduced the Electric Mobility Promotion Scheme (EMPS) 2024 in March 2024.

Why was EMPS introduced?

EMPS acted as a transitional mechanism to ensure that EV adoption momentum was not disrupted while a more comprehensive scheme was being prepared.

Key Features of EMPS 2024

The scheme primarily targeted:

• Electric Two-Wheelers.
• Electric Three-Wheelers.
• Commercial EV mobility.

EMPS played a crucial role in maintaining demand support during the transition period between FAME-II and PM E-DRIVE.

PM E-DRIVE: Comprehensive EV Transformation Framework

The next major milestone came when the Union Cabinet approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme on 11 September 2024.The scheme became operational from 1 October 2024 and will remain effective till 31 March 2026.

Financial Outlay

• Total Outlay: ₹10,900 Crore
• Duration: Two Years

Vision

The scheme seeks to:

• Accelerate EV adoption.
• Establish nationwide charging infrastructure.
• Promote clean mobility.
• Strengthen domestic manufacturing.
• Support Aatmanirbhar Bharat.
• Reduce vehicular emissions.

Major Components of PM E-DRIVE

Demand Incentives

A total allocation of ₹3,679 crore has been earmarked for:

• 24.79 lakh e-2Ws.
• 3.16 lakh e-3Ws.
• e-Ambulances.
• e-Trucks.
• Emerging EV categories.

Introduction of Aadhaar-Based e-Voucher System

A major innovation under PM E-DRIVE is the introduction of Aadhaar FACE-authenticated e-Vouchers.Process:

1. e-KYC authentication at purchase.
2. e-Voucher generated automatically.
3. Link sent to buyer's mobile number.
4. Buyer signs digitally.
5. Dealer uploads voucher.
6. OEM claims reimbursement.

This improves transparency, accountability, and ease of subsidy disbursement.

e-Ambulance: New Category Introduced

For the first time, the Government introduced dedicated support for Electric Ambulances.

• Allocation: ₹500 crore
• Standards to be formulated jointly by:
  • Ministry of Health & Family Welfare (MoHFW)
  • Ministry of Road Transport & Highways (MoRTH)

The initiative seeks to provide cleaner and quieter emergency healthcare transport.

e-Truck Promotion

To decarbonise freight transportation:

• ₹500 crore allocated.
• Incentives linked with scrapping of old vehicles.
• Scrapping certificate from MoRTH-approved Registered Vehicle Scrapping Facility (RVSF) mandatory.

This aligns EV adoption with the circular economy approach.

Massive Push for e-Buses

The largest allocation under PM E-DRIVE is for electric buses.

Cities include:

• Delhi
• Mumbai
• Kolkata
• Chennai
• Ahmedabad
• Surat
• Bengaluru
• Pune
• Hyderabad

Preference is given to replacing scrapped State Transport Undertaking (STU) buses.

Charging Infrastructure Expansion

A robust charging ecosystem forms a core pillar of PM E-DRIVE.

Charging stations will be established in:

• High EV penetration cities.
• Major highways.
• Inter-city corridors.

Testing Infrastructure Modernisation

To support emerging EV technologies:

• ₹780 crore allocated.
• Modernisation of MHI testing agencies.
• Development of advanced EV certification ecosystem.

EV Adoption Gains Momentum

India's EV ecosystem has witnessed rapid growth.Key indicators include:

• 44 lakh EVs registered by August 2024.
• 6.6% EV market penetration.
• e-2W sales reached 5.71 lakh units during 2024-25.
• e-3W sales continue to witness strong growth.

The PM E-DRIVE scheme has further accelerated this momentum.

Supporting Manufacturing Ecosystem

The EV transition is being reinforced through complementary policy support:

PLI-Auto Scheme (2021)

• Outlay: ₹25,938 crore.
• Focus:
  • Advanced Automotive Technology (AAT).
  • EV manufacturing.
  • Hydrogen Fuel Cell technologies.

PLI-ACC Scheme (2021)

• Outlay: ₹18,100 crore.
• Target:
  • 50 GWh domestic battery manufacturing capacity.

SMEC Scheme (2024)

• Promotion of Electric Passenger Car Manufacturing.
• Minimum investment requirement:
  • ₹4,150 crore.
• DVA Targets:
  • 25% by Year 3.
  • 50% by Year 5.

Implications

The transition from FAME → EMPS → PM E-DRIVE demonstrates India's movement from subsidy-driven EV adoption towards a comprehensive electric mobility ecosystem encompassing:

• Demand creation.
• Charging infrastructure.
• Battery manufacturing.
• Public transport electrification.
• Freight decarbonisation.
• Domestic manufacturing.
• Technology development.

This integrated approach strengthens India's position as an emerging global EV manufacturing and mobility hub.

Chronological Timeline

Static Part

PM E-DRIVE

PM Electric Drive Revolution in Innovative Vehicle Enhancement

• Approved:
  • 11 September 2024
• Operational:
  • 1 October 2024
• Ministry:
  • Ministry of Heavy Industries
• Outlay:
  • ₹10,900 Crore
• Duration:
  • October 2024 – March 2026

FAME India Phase-II

Faster Adoption and Manufacturing of (Hybrid & Electric) Vehicles

• Launch:
  • 1 April 2019
• Ministry:
  • Ministry of Heavy Industries
• Outlay:
  • ₹11,500 Crore
• Focus:
  • EV adoption and charging infrastructure.

EMPS 2024

Electric Mobility Promotion Scheme

• Launch:
  • March 2024
• Outlay:
  • ₹500 Crore
• Duration:
  • Four Months
• Objective:
  • Transitional support between FAME-II and PM E-DRIVE.

CESL

Convergence Energy Services Limited

• Parent Organization:
  • Energy Efficiency Services Limited
• Function:
  • Demand aggregation and procurement of electric buses.

RVSF

Registered Vehicle Scrapping Facility

• Regulated By:
  • Ministry of Road Transport & Highways.
• Purpose:
  • Scientific scrapping of end-of-life vehicles.

PLI-Auto Scheme

• Launch:
  • 2021
• Outlay:
  • ₹25,938 Crore
• Focus:
  • Advanced Automotive Technology (AAT).

PLI-ACC Scheme

• Launch:
  • 2021
• Outlay:
  • ₹18,100 Crore
• Objective:
  • Domestic Advanced Chemistry Cell manufacturing.

Updated – 25 March 2025 ; 06:09 PM | News Source:

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