Govt unveils Rs 500 crore incentive scheme for electric ambulances under PM E-DRIVE

PM E-DRIVE update: In a significant push towards green and sustainable mobility, the Central government has extended the PM E-DRIVE scheme for promoting electric ambulances, setting aside Rs 500 crore to support their adoption and encourage domestic manufacturing.

PM E-DRIVE scheme means PM Electric Drive Revolution in Innovative Vehicle Enhancement, launched by the government on September 11, 2024 and came into effect on October 11, 2024.

According to a notification issued by the Ministry of Heavy Industries in the official gazette on June 17, e-ambulances falling under the Patient Transport Vehicle (type B), Basic Life Support (type C), and Advanced Life Support (type D) categories will be eligible for incentives under this scheme.

Incentives for e-ambulances under PM E-DRIVE scheme

Under this scheme, the incentive will be calculated at Rs 30,000 per kWh of battery capacity, subject to a maximum of 35 per cent of the vehicle's ex-factory price. Medical equipment and other additional systems installed in ambulances will not be considered while calculating the eligible vehicle price.

The notification lays down performance standards for vehicles seeking incentives. Electric ambulances based on M1 and M2 categories must offer a minimum driving range of 140 km and a top speed of at least 70 kmph. Larger M3-category ambulances must provide a minimum range of 140 km and an operational range of at least 120 km under air-conditioning usage conditions.

What manufacturers need to know?

All manufacturers eligible under this scheme will have to provide a warranty of five years or 1.25 lakh km, whichever is earlier, on the vehicle, battery and motor.

The notice emphasises local manufacturers through a phased manufacturing programme. Components such as battery packs, battery management systems, traction motors, motor controllers, charging systems, and vehicle control units will have to be increasingly sourced and produced within the country.

What kind of e-ambulances are under the PM E-DRIVE scheme?

Three types of ambulances are categorised under this scheme: M1, M2, and M3

• Electric ambulances in the M1 and M2 categories must offer a minimum driving range of 140 kilometres, while maintaining a minimum top speed of 70 kmph.
• Larger M3-category ambulances are required to provide a minimum range of 140 kilometres and at least 120 kilometres of range under operational conditions with HVAC systems running.

Are PSUs and state agencies eligible?

The scheme is also available for state and central agencies, including public sector undertakings and various government departments; however, the notification clears hat eligibility for incentives under PM E-DRIVE will not automatically qualify vehicles for deployment under the national ambulance service or national health mission programmes, for which separate operational requirements must be satisfied.

The move is expected to support cleaner transportation in the healthcare sector while creating new opportunities for domestic EV manufacturers and component suppliers, as India accelerates its transition towards sustainable mobility.