PM E-Drive scheme gets 2-year extension for electric buses, trucks, and ambulances

The centre has extended the validity of the PM E-Drive scheme by two years for electric buses, ambulances, and electric trucks. A gazette notification said the scheme will now lapse in March 2028 instead of March 2026. Fund allocation for the scheme has been maintained at Rs 10,900 crore. The Ministry of Heavy Industries said no additional allocation will be made under the scheme.

“In case the funds for the Scheme or its relevant sub-components are exhausted prior to the terminal date of the scheme (31st March 2028), then the Scheme or its relevant subcomponents will be closed accordingly,” MHI said while adding the terminal date for registered e-2W, registered e-rickshaws & e-cart and registered e-3W (L5) shall be March 31, 2026.

Union Heavy Industries Minister H D Kumaraswamy had launched a portal to facilitate subsidies for electric trucks under the ongoing PM E-DRIVE scheme last month.


“Diesel trucks, though constituting only 3% of the total vehicle population, contribute to 42% of transport-related greenhouse gas emissions and significantly worsen air pollution,” Kumaraswamy had said.

To encourage decarbonisation, the centre is offering up to Rs 9.6 lakh as incentive for switching to electric trucks. The scheme is expected to support the deployment of approximately 5,600 e-trucks across the country from around Rs 500 crore.

An official statement said a dedicated provision for 1,100 e-trucks registered in Delhi has been made with an estimated outlay of Rs 100 crore.

Beneficiaries will need to submit scrapping certificates of old trucks to be eligible to claim subsidies under the scheme. Officials said these certificates can be purchased through authorised retailers from scrapping centres.