In a bid to reduce dependence on fossil fuels and strengthen domestic capabilities in critical minerals for clean energy technologies, the centre has approved the extension of the ₹10,900-crore PM E-DRIVE scheme.
This development has come at a time when the government is trying to manage domestic energy demand situation amid the West Asia crisis triggered by the US-Israel-Iran conflict that started on February 28. The volatile geopolitical situation has led to heightened volatility in the global energy markets, raising concerns over fuel price stability and potential supply chain disruptions. Officials said that since the onset of the crisis, the government has undertaken coordinated measures to sustain electric mobility growth and address supply chain vulnerabilities in Electric Vehicle (EV) components.
Under the revised timelines, the electric two-wheeler segment has been extended by three months up to July 31, 2026, and the electric three-wheeler segment, including e-rickshaws and e-carts, has been extended by two years up to March 31, 2028.
Officials added that policy support under the PM E-DRIVE scheme has been streamlined to ensure continuity of incentives, boost EV adoption and promote domestic manufacturing.
The government has been driving domestic manufacturing of major EV components with an outlay of ₹7,280 crore approved by the union cabinet on November 26, 2025 under the scheme to promote manufacturing of sintered Rare Earth Permanent Magnets (REPM) in a step to reduce import dependence and strengthen supply chains.
