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Centre slashes PME-Drive e-rickshaw outlay by 75%
Mint Chennai
|August 23, 2025
Incentives for e-rickshaws lowered from 110,000 to 40,000 units; L5 target raised to 288,000 from 200,000
The Union heavy industries ministry has cut the outlay for e-rickshaws under PM Electric Drive Revolution in Innovative Vehicle Enhancement (PME-DRIVE) Scheme to ₹50 crore from ₹192 crore. In an amendment notified on 13 August, the Centre placed its bets on providing demand incentives to electric three-wheelers used for passenger or cargo transport, or the L5 category.
The amendment raised the outlay for L5 category vehicles to ₹857 crore from ₹715 crore, after low demand for e-rickshaw incentives. Low demand was most evident in the e-rickshaw category, which depends on imported parts and fails to meet the localization norms.
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