FISCAL INCENTIVES UNDER PM E-DRIVE SCHEME

• PM E-DRIVE (Pradhan Mantri Electric Drive Revolution in Innovative Vehicle Enhancement) is the Ministry of Heavy Industries (MHI) flagship demand-incentive scheme for EVs, succeeding FAME-II.
• Total outlay ₹10,900 crore, originally for 2 years (notified 29 Sep 2024), since extended to 31 March 2028.
• Incentives flow as upfront price reduction to buyers, reimbursed to OEMs by MHI; the scheme grants no tax exemption to manufacturers — those are covered under the separate PLI-Auto scheme (13–18%).
• UPSC relevance: GS-III (Indian Economy, Infrastructure, Environment) — EV transition, fiscal policy, climate commitments.