India’s Ministry of Heavy Industries prolongs the support programme for electric mobility until 2028, aiming to boost adoption of electric buses, trucks, and charging infrastructure amid slow initial uptake and sustained funding.
India’s Ministry of Heavy Industries has pushed the PM E-DRIVE scheme out to 31 March 2028, giving the electric-vehicle support programme two extra years while keeping the same ₹10,900 crore budget. The extension reflects slower-than-expected use of the fund and a desire to keep momentum in electric mobility, charging infrastructure and local manufacturing.
The scheme was first notified on 29 September 2024 and was due to end on 31 March 2026. Under the revised timetable, support for electric buses, trucks, ambulances and charging infrastructure can continue until the new deadline, but incentives for registered electric two-wheelers, e-rickshaws, e-carts and registered electric three-wheelers will still end on 31 March 2026. According to the ministry, the fund is capped, so any component that exhausts its allocation before 2028 will close early and further claims will not be accepted.
Union Heavy Industries Minister H.D. Kumaraswamy said the move would help sustain the pace of e-mobility adoption in India. The ministry has framed the extension as especially important for the commercial vehicle segment, where full-scale production of electric trucks is still at an early stage. Industry reporting has also indicated that the bus and truck categories are absorbing support more slowly than planned, leaving a large share of the corpus unused.
The electric bus programme remains one of the scheme’s largest elements, with ₹4,391 crore set aside for 14,028 units. Post-selection work is expected to begin from March 2026, with grant payments tied to milestones over an 18-month period. The ministry has also said more time is needed for testing agencies to buy and commission equipment, a process it regards as essential to safety and quality standards as the market for electric commercial vehicles expands.
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