Bhubaneswar: The transition toward green mobility in Odisha is set to receive a significant boost as the state has been allocated a quota of 74,804 electric two-wheelers under the central government’s new PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.
This initiative, managed by the Ministry of Heavy Industries, aims to accelerate the adoption of cleaner transport solutions across India by making electric vehicles more affordable for the common citizen. Under the scheme, an outlay of Rs.1,772 crore has been earmarked nationwide to incentivize nearly 25 lakh electric two-wheelers registered between April 1, 2024, and March 31, 2026.
For residents of Odisha, the scheme functions through a direct upfront reduction in the purchase price of eligible electric scooters and motorcycles. Buyers receive this discount at the point of sale, and the Ministry subsequently reimburses the cost to the Original Equipment Manufacturers (OEMs). This mechanism ensures that the financial benefit reaches the consumer immediately, reducing the initial cost barrier that often discourages the shift from petrol-powered vehicles.
The implementation is being carried out on a pan-India basis, which means the 74,804 incentivized units for Odisha will be available to buyers in both urban centers like Bhubaneswar and Cuttack as well as rural districts.
While the PM E-DRIVE scheme focuses on consumer incentives rather than direct tax exemptions for companies, it works in tandem with the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components. This secondary scheme supports manufacturers by offering incentives ranging from 13 percent to 18 percent of sales values for advanced automotive technology products.
A key feature of the program is the Phased Manufacturing Programme (PMP) requirement. To qualify for these benefits, manufacturers must comply with strict localization mandates. This ensures that the components used in the electric vehicles are increasingly produced within India, aiming to strengthen the domestic manufacturing ecosystem and create local jobs.
As Odisha continues to develop its charging infrastructure, the addition of over 74,000 subsidized electric two-wheelers is expected to play a vital role in reducing the state’s carbon footprint and lowering daily commuting costs for its citizens.