PM e-DRIVE Scheme: Complete Operator's Guide for FY2026 Claims

PM e-DRIVE: What It Is and Why It Replaced FAME II

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-DRIVE) scheme, approved by the Cabinet in September 2024 with a ₹10,900 crore outlay spanning FY2024-25 and FY2025-26, represents India's second-generation central EV incentive programme. Unlike FAME II, which used a demand-linked subsidy model that proved vulnerable to fraudulent claims from non-compliant OEMs, PM e-DRIVE uses a direct benefit disbursement model with tighter OEM registration requirements and real-time VahanDB linkage — significantly improving accountability and reducing leakage.

Eligible Vehicle Categories and Subsidy Quantum

• check_circleElectric two-wheelers: ₹5,000 per kWh, maximum ₹10,000 per vehicle (2–4 kWh pack most common)
• check_circleElectric three-wheelers — L5 passenger and L5M cargo: ₹25,000 per vehicle
• check_circleElectric intracity buses, 9–12 metre: ₹20 lakh per bus
• check_circleElectric intracity buses, 12+ metre: ₹35 lakh per bus
• check_circleElectric ambulances: ₹10 lakh per vehicle under a dedicated sub-scheme
• check_circleEV charging infrastructure: eligible CPOs claim infrastructure support via the MoP portal separately

The Claim Process: Step by Step

• check_circleStep 1 — OEM Registration: Vehicle manufacturer registers on the PM e-DRIVE portal with VahanDB integration credentials. Only vehicles from registered OEMs are eligible.
• check_circleStep 2 — VahanDB Linkage: At point of sale, the OEM dealer registers the vehicle in VahanDB with EV-specific fields: battery capacity (kWh), OEM registration ID, and subsidy claim flag.
• check_circleStep 3 — Subsidy Disbursement: Ministry of Heavy Industries (MHI) disburses subsidy directly to the OEM bank account monthly, based on verified VahanDB sales data from the previous month.
• check_circleStep 4 — Buyer Price Reduction: OEM passes through the subsidy as a price reduction at point of sale. The buyer receives the discounted price; invoice documents the subsidy amount applied.
• check_circleStep 5 — Charging Infra Claims (CPOs): File a separate application on the MoP EVSE Infra portal with DISCOM approval, installation photos, and BIS certification documents.

Documentation CPOs Need for Charging Infra Claims

• check_circleValid DISCOM connection approval letter for the site
• check_circleBIS certification of charging equipment (IS 17017 Part 2 for AC, Part 3 for DC)
• check_circleGeo-tagged installation photographs — minimum 4 angles showing the charger, site, and meter
• check_circleSite address proof and ownership or lease documents
• check_circleGSTIN and PAN of the claiming entity
• check_circleBank account details for direct benefit transfer
• check_circleFor chargers above 50 kW: electrical safety certificate from a licensed electrical inspector

Common Rejection Causes

• check_circleOEM not registered on PM e-DRIVE portal — verify eligibility before vehicle purchase
• check_circleVehicle registered in VAHAN with incorrect battery capacity (mismatch from OEM data)
• check_circleDealer submitted incorrect OEM registration ID — verify subsidy certificate at time of delivery
• check_circleFor infra claims: charger model not in the current BIS-approved equipment list
• check_circleFor infra claims: DISCOM connection registered under a different entity name than the applicant
• check_circleInfra claim submitted after the 90-day post-commissioning window has closed

Timeline and Disbursement

For vehicle subsidies, disbursement to OEMs typically occurs within 45–60 days of the monthly data cut-off based on VahanDB verification. For charging infrastructure claims, the MoP EVSE portal processes applications within 90 working days of a complete submission — though in practice, straightforward claims with complete documentation are typically cleared within 60–75 days. Go4Garage's URGAA platform tracks PM e-DRIVE claim status in real-time, sends alerts for document deficiencies, and maintains a complete audit trail for all subsidy interactions, supporting both annual compliance and any future inspections.