Law Updates

Subject

Summary: The Ministry of Heavy Industries has revised the Phased Manufacturing Programme (PMP) for M2/M3 electric buses under the PM E-DRIVE Scheme. The change has been issued through S.O. 4884(E), dated 3 September 2026, and it deals specifically with the manufacturing of traction motors used in the covered e-buses.  The amendment does not introduce a new licence or application procedure. Its focus is much narrower: certain traction motor manufacturing activities must be carried out domestically. The Gazette sets one list of activities for the first phase and then adds two more operations from 1 April 2027. For e-bus manufacturers, traction motor suppliers and EV component businesses, the real question is whether their present manufacturing arrangement matches the revised PMP and whether suppliers will be ready for the next stage. Notification at a Glance Particular Details Issuing Authority Ministry of Heavy Industries Notification S.O. 4884(E) Date 3 September 2026 Scheme PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme Programme Phased Manufacturing Programme for e-buses Vehicle Category M2/M3 e-buses Component Changed Traction Motor PMP Entry Sr. No. 8 First Phase 1 September 2026 Second Phase 1 April 2027 Main Change Expansion of domestic traction motor manufacturing activities The key change is straightforward. Six specified fitment operations appear in the first phase. From April 2027, magnet fitment and shaft fitment are added to those operations.  Regulatory Background of the E-Bus PMP The latest amendment is part of an existing scheme and should not be read as a completely new framework. PM E-DRIVE Scheme The PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme, commonly called PM E-DRIVE, was notified by the Ministry of Heavy Industries through S.O. 4259(E) dated 29 September 2024. PMP for E-Buses The Phased Manufacturing Programme for e-buses was later notified through S.O. 1078(E) dated 3 March 2025. The Ministry subsequently made changes through: S.O. 4480(E) dated 30 September 2025  S.O. 1330(E) dated 13 March 2026  The latest notification, S.O. 4884(E), further changes Sr. No. 8 of the PMP, which deals with the traction motor.  For manufacturers, this means the current requirement should be checked against the latest amended PMP rather than an older version of the programme. What Is the Phased Manufacturing Programme for E-Buses? The PMP sets manufacturing conditions for identified components used in the e-buses covered by the scheme. The word “phased” matters here. The manufacturing requirement does not remain the same throughout the programme. Different operations may be brought within the domestic manufacturing requirement at different stages. In the present amendment, that phased approach is visible in the traction motor requirement. The first stage lists six activities. The next stage keeps those activities and adds two more. The Gazette does not amend every e-bus component through this notification. It changes only the entry dealing with the traction motor. What Has Changed in the E-Bus PMP? The amendment changes the minimum manufacturing activities that need to be performed domestically for traction motors. The main changes are: Affected component: Traction motor  Covered vehicle category: M2/M3 e-buses  First set of operations: Listed from 1 September 2026  Second set of operations: Listed from 1 April 2027  Main addition from April 2027: Magnet fitment and shaft fitment  For manufacturers, this means the first-stage setup will not be enough once the second phase begins. Businesses will need to check whether their traction motor manufacturing process also covers magnet fitment and shaft fitment from 1 April 2027. This may require a review of existing production arrangements, supplier capabilities and the location where these activities are carried out. Which E-Buses Are Covered Under the Revised PMP? The Gazette specifically refers to e-buses falling under the M2/M3 categories. The notification should not be treated as a general traction motor rule for every electric vehicle sold or manufactured in India. It does not, by itself, extend the revised requirement to: Electric two-wheelers  Electric three-wheelers  Passenger electric cars  Electric trucks  Every type of electric bus  Every EV component  A manufacturer should first check whether its vehicle and manufacturing activity fall within the relevant e-bus PMP before applying the amended requirement. New Traction Motor Manufacturing Requirements Traction motor manufacturing is the heart of this amendment. The requirement is divided into two stages. Requirements from 1 September 2026 The first phase states that traction motor manufacturing must at least include certain operations performed domestically. These are: 1. Rotor Assembly Fitment The rotor assembly has to be fitted into the motor domestically. The notification talks about the fitment activity. It does not say, through this amendment alone, that the rotor assembly itself must necessarily be manufactured in India. 2. Stator Assembly Fitment The stator assembly must also be fitted into the motor domestically. This is another production-stage requirement rather than a general statement on the origin of every material used in the stator. 3. Bearing Fitment Fitting of bearings is included in the minimum domestic manufacturing operations of the traction motor. 4. Enclosure Fitment The motor enclosure must be fitted domestically as part of the specified manufacturing process. 5. Connector Fitment Connector fitment is also included in the first-stage requirement. 6. Cable Fitment The listed domestic manufacturing operations also include cable fitment. These six activities make up the first-stage list given in the Gazette.  Additional Requirements from 1 April 2027 The requirement becomes wider from 1 April 2027. Two more manufacturing activities enter the minimum domestic process: Magnet Fitment Magnet fitment is added from April 2027. Manufacturers and suppliers should therefore check where this operation currently takes place and whether their manufacturing arrangement will meet the later-stage requirement. Shaft Fitment Shaft fitment is the second additional operation. Like magnet fitment, it becomes part of the listed domestic traction motor manufacturing activity from April 2027. The six earlier operations continue to appear in the requirement. They are not replaced.  September 2026 vs April 2027: What Actually Changes? Traction Motor Activity From 1 Sept 2026 From 1 Apr 2027 Magnet fitment Not listed in this phase Required Rotor assembly fitment into motor Required Required Stator assembly fitment into motor Required Required Shaft fitment Not listed in this phase Required Bearing fitment Required Required Enclosure fitment Required Required Connector fitment Required Required Cable fitment Required Required The difference is limited but important. The first phase has six listed fitment operations. The second phase has eight. Magnet fitment and shaft fitment are the two additions. For a business already carrying out all eight operations domestically, the April 2027 stage may require little operational change. A supplier that currently carries out magnet or shaft fitment outside India may need to review its production arrangement. Effective Date: One Point Businesses Should Read Carefully There is a date-related issue in the notification that deserves attention. S.O. 4884(E) is dated 3 September 2026, and paragraph 2 states that the amendment takes effect from the date of publication in the Official Gazette. The table, however, states: “With effect from 1st September 2026” for the first traction motor manufacturing requirement.  The notification does not explain the difference between these two dates. Businesses should therefore avoid making their own assumptions about how the period between 1 September and 3 September should be treated. Where this timing affects production records, eligibility or scheme-related compliance, the wording should be reviewed carefully, and clarification may be appropriate. Which Traction Motor Activities Need to Be Performed Domestically? A simple way to read the amendment is to separate the two stages. First Stage The listed domestic operations are: Rotor assembly fitment into motor  Stator assembly fitment into motor  Bearing fitment  Enclosure fitment  Connector fitment  Cable fitment  Second Stage From 1 April 2027, the list becomes: Magnet fitment  Rotor assembly fitment into motor  Stator assembly fitment into motor  Shaft fitment  Bearing fitment  Enclosure fitment  Connector fitment  Cable fitment  One distinction should remain clear. The notification requires these manufacturing activities to be performed domestically. It does not state in this amendment that every individual material, subcomponent, or input used in the traction motor has to be produced in India. It also does not prescribe a domestic value-addition percentage in S.O. 4884(E). Impact on E-Bus Manufacturers and OEMs The amendment may look small on paper, but manufacturers need to connect the wording with their actual production chain. Manufacturing Process Mapping OEMs should know where the relevant traction motor activities are carried out. If the traction motor comes from an external supplier, the OEM may need more information than a simple purchase invoice or supplier declaration. The business should understand the manufacturing chain well enough to identify where the listed operations happen. Supplier Capability April 2027 is particularly relevant. Though a provider that is capable of performing rotor, stator, bearing, enclosure, connector, and cable fitment is not always capable of doing magnet and shaft fitment. That gap should be identified before the later phase begins. Procurement Decisions Price, delivery schedule, and technical specification will continue to matter, but the location of manufacturing operations may also become relevant when selecting traction motor suppliers under the applicable PMP. Procurement teams may therefore need to work more closely with production and compliance teams. Vendor Agreements Businesses may also choose to review supplier agreements so that responsibility for specific manufacturing operations is clearly understood. The Gazette itself does not order companies to amend contracts. Contract review is simply a practical way to reduce uncertainty where production is outsourced. Impact on Traction Motor Manufacturers and Suppliers The amendment is even more relevant for businesses that manufacture or assemble traction motors for e-bus OEMs. A supplier should know exactly which operations are being done at each facility. Areas that may need attention include: Production Capability The current production line should be checked against both phases of the PMP requirement. Magnet Fitment Readiness If magnet fitment is currently carried out outside India or by another supplier, the business may need to examine how the April 2027 requirement will be met. Shaft Fitment Readiness The same review should be carried out for shaft fitment. Manufacturing Responsibility Where several suppliers or facilities are involved, responsibility for each operation should be clearly mapped. Production Records Clear internal records can help a business understand and demonstrate its own manufacturing arrangement. S.O. 4884(E) does not provide a separate mandatory document list, so businesses should not treat general record recommendations as a new statutory filing requirement. Supply-Chain and Localisation Impact of the Revised PMP The amendment may change the way e-bus manufacturers look at traction motor sourcing. A supplier may offer a technically suitable product, but manufacturers also need to understand where the specified fitment work takes place. This can make the following areas more relevant: Manufacturing location  Supplier capability  Division of work between facilities  Imported subassemblies  Domestic assembly capacity  Vendor verification  Production documentation  The amendment should not be stretched beyond its wording. It does not say that imported material is completely prohibited. It says that the identified traction motor manufacturing activities must be performed domestically. That is the point manufacturers should map against their supply chain. What Should Manufacturers Review Before 1 April 2027? Businesses do not need to wait until the second phase begins to check readiness. 1. Map the Existing Traction Motor Process List the traction motor operations and identify where each one is carried out. 2. Check Magnet Fitment Determine if magnet fitment has been done domestically. If it is not, identify what change may be required before April 2027. 3. Check Shaft Fitment Carry out the same exercise for shaft fitment. 4. Speak to Suppliers Do not assume that a supplier's overall Indian presence means every relevant operation takes place domestically. Ask where the prescribed operations are actually carried out. 5. Check Production Responsibility If more than one facility is involved, identify which unit handles each manufacturing stage. 6. Organise Internal Records Keep supplier, manufacturing, and production information in a form that can be checked internally when needed. 7. Review the Latest PMP Older supplier assessments or manufacturing plans should be compared with the latest applicable amendment. Compliance Risks Businesses Should Avoid A few reading or planning mistakes can create avoidable problems. Using Only the First-Phase List From April 2027, businesses should not continue treating the six earlier activities as the complete list. Missing Magnet Fitment Magnet fitment becomes part of the specified domestic manufacturing activity in the second phase. Missing Shaft Fitment Shaft fitment is also added from April 2027. Assuming Where Manufacturing Happens A supplier's registered office or sales location does not necessarily tell a manufacturer where a particular production operation takes place. Applying the Notification to Every EV S.O. 4884(E) deals with the PMP for M2/M3 e-buses. It should not automatically be applied across unrelated EV categories. Treating “Domestic Manufacturing” Too Broadly The notification identifies manufacturing operations that must be performed domestically. It does not state that every raw material and component must automatically be Indian-made. Ignoring the Date Difference The wording relating to Gazette publication and the 1 September 2026 date should be reviewed rather than silently treated as the same thing. Does the Amendment Increase Domestic Manufacturing in the E-Bus Supply Chain? Yes, but in a specific sense. The number of identified manufacturing operations required to be carried out domestically increases from six in the first phase to eight in the second. Magnet and shaft fitment are brought into the domestic manufacturing requirement from April 2027. That represents a deeper level of local manufacturing activity at the traction motor assembly stage. However, the notification does not state: A specific localisation percentage  A domestic value-addition percentage  That every part must originate in India  That imported inputs are completely barred  Those claims should not be added to the notification. Is the Revised E-Bus PMP a Localisation Push or an Additional Compliance Burden? It can have elements of both. Where Manufacturers May Benefit More manufacturing operations being carried out domestically can support local traction motor assembly capability. Indian motor and component manufacturers that already handle magnet fitment, shaft fitment, and related assembly work may become more relevant to OEM sourcing decisions. OEMs may also gain better visibility over how and where their traction motors are assembled. Where Businesses May Face Difficulty The amendment can require changes where a company currently relies on overseas facilities for one of the added operations. Possible adjustments may involve: Supplier changes  Transfer of process to India  Expansion of production capacity  Analysis of vendors' obligations  Updating internal production records  This will largely be influenced by the current production system of the company. Practical View A business that already performs all the listed operations domestically may need little adjustment. A business whose manufacturing chain does not cover magnet or shaft fitment domestically may have more work to do before April 2027. That is why the real burden of the amendment cannot be judged in the same way for every manufacturer. Business Opportunities for Indian EV Component Manufacturers The revised PMP may also create room for Indian manufacturers that can support traction motor production. Possible opportunity areas include: Traction Motor Assembly Businesses with motor assembly capability may become useful manufacturing partners for e-bus OEMs and motor suppliers. Magnet Fitment The addition of magnet fitment from April 2027 can increase the relevance of domestic facilities capable of carrying out this work. Shaft Fitment Suppliers equipped for shaft fitment may also find new B2B opportunities. Component Assembly Support Businesses specialising in rotor, stator, bearing, enclosure, connector or cable fitment can become part of a larger traction motor manufacturing chain. Contract Manufacturing OEMs or motor suppliers that do not want to build every capability in-house may examine domestic contract manufacturing arrangements. These are potential commercial effects of the amendment. The notification does not guarantee any particular volume of business or revenue. What Businesses Should Do Next E-bus manufacturers and traction motor suppliers should focus on a few practical checks: Review S.O. 4884(E) along with the applicable e-bus PMP.  Confirm whether the vehicle and activity fall within the relevant M2/M3 e-bus requirements.  Map every listed traction motor manufacturing operation.  Identify the location where each operation is actually carried out.  Check magnet and shaft fitment arrangements before 1 April 2027.  Review supplier capability instead of relying only on commercial terms.  Keep manufacturing and supplier information organised.  Obtain specialist regulatory guidance where the effective-date wording or PMP applicability is unclear.  How Corpseed Can Help with PM E-DRIVE and EV Manufacturing Compliance Manufacturing compliance becomes harder when a regulatory condition has to be matched with an actual factory process, supplier chain, and technical setup. Corpseed can support e-bus OEMs, traction motor manufacturers, and EV component suppliers that need help reviewing their position under the applicable PMP. Businesses looking for an EV manufacturing compliance consultant can use Corpseed's support for regulatory review, manufacturing compliance assessment, and documentation planning. PM E-DRIVE Applicability Review Corpseed can help examine whether a particular e-bus, component, or manufacturing arrangement falls within the relevant PM E-DRIVE and PMP requirements. PMP Compliance Assessment Existing manufacturing activities can be mapped against the applicable phased requirement. This can help identify whether the business already meets the relevant stage or whether some operations need further attention. Traction Motor Compliance Review Corpseed can assist with reviewing the manufacturing setup for: Rotor assembly fitment  Stator assembly fitment  Bearing fitment  Enclosure fitment  Connector fitment  Cable fitment  Magnet fitment  Shaft fitment  The review should remain tied to the actual PMP wording and the business's manufacturing arrangement. Supplier and Manufacturing Documentation Review Where production involves multiple suppliers, Corpseed can assist businesses in organising manufacturing information and identifying gaps in supplier documentation. April 2027 Readiness Assessment Manufacturers that need to prepare for the second phase can use PM E-DRIVE compliance support to review whether magnet and shaft fitment arrangements are ready before the applicable date. EV Component Regulatory Support Corpseed's EV manufacturing compliance services can also support manufacturers dealing with other applicable regulatory requirements connected with their EV components and production activities. Compliance Gap Assessment A gap assessment can compare the present manufacturing setup with the applicable PMP requirements and highlight areas that need further review. For e-bus OEMs and component suppliers, working with an EV regulatory consultant or automotive compliance consultant can be useful when several manufacturing locations, suppliers, or scheme conditions need to be checked together. Corpseed can provide help to the business sector through its practical manufacturer compliance service and PMP regulatory assessment without considering the Gazette as mere paperwork. Key Takeaways The Ministry of Heavy Industries has amended Sr. No. 8 of the e-bus PMP through S.O. 4884(E) dated 3 September 2026. The affected component is the traction motor used for M2/M3 e-buses.  Six traction motor fitment operations are listed for the first stage. From 1 April 2027, magnet fitment and shaft fitment are added, taking the listed operations to eight.  Manufacturers should pay particular attention to where these operations are performed, whether their suppliers are ready for the second phase, and how the date wording in the Gazette applies to their specific case.

Subject

Summary: The Ministry of Heavy Industries issued the PM E-DRIVE Scheme Amendment 2026 on 10 August 2026. The amendment was published as S.O. 4424(E) in the Gazette of India. It changes selected parts of the PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme. The new notification raises the scheme outlay to ₹11,900 crore. It also increases the maximum number of registered electric two-wheelers eligible for support to 45,79,120. The total fund support for this segment is now ₹2,767 crore. The amendment matters to electric vehicle manufacturers , dealers, component suppliers, testing agencies, fleet businesses and buyers. It sets the scheme's terminal date to 31 March 2028. However, claims must be submitted to the Ministry of Heavy Industries or its Project Management Agency by 31 December 2027. Funding may also end earlier if the scheme or a sub-component runs out of money. This is an amendment, not a fresh scheme. Businesses must read it with the original notification, earlier amendments and operational guidelines. The official PM E-DRIVE notification page lists the main scheme documents. Notification at a Glance Particular Verified details Issuing authority Ministry of Heavy Industries, Government of India Document type Gazette notification amending an existing scheme Gazette number 4246, Part II, Section 3, Sub-section (ii) Publication date 10 August 2026 Effective date Date of publication in the Official Gazette Original scheme notification S.O. 4259(E), dated 29 September 2024 Total scheme outlay ₹11,900 crore Scheme period stated in the amendment 1 April 2024 to 31 March 2028 Main segment revised Registered electric two-wheelers Maximum supported e-2Ws 45,79,120 E-2W fund support ₹2,767 crore Maximum eligible e-2W ex-factory price ₹1.5 lakh Last date for submitting any claim 31 December 2027 Final date for payment by MHI/PMA 31 March 2028 Nature of the scheme Fund-limited, participation is voluntary, but scheme conditions bind participants claiming support The most important point is simple. The scheme may run until 31 March 2028, but support is not guaranteed until that date. A vehicle segment can close earlier when its funds or approved target are exhausted. The Regulatory Framework Issuing Authority and Its Role The Ministry of Heavy Industries, also called MHI, manages the PM E-DRIVE Scheme. It sets scheme conditions, approves eligible models, and oversees the payment of demand incentives. A demand incentive is financial support that helps reduce the effective price of an eligible electric vehicle. MHI may work through a Project Management Agency, or PMA. The PMA helps with applications, records, claim review and payment processing. The notification uses the term MHI/PMA when it fixes the last claim and payment dates. Original Scheme and Amendment History The original PM E-DRIVE Scheme was notified through S.O. 4259(E) on 29 September 2024. The government approved it to support electric mobility, charging infrastructure and the EV manufacturing system. The original Cabinet announcement described a ₹10,900 crore scheme over two years. There have been multiple amendments in this regard. The notification S.O. 3626(E) was issued on 7 August 2025, extending the period of the wider scheme till 31 March 2028. The amendment S.O. 1617(E) was made on 27 March 2026, addressing certain vehicle segments. The most recent amendment, S.O. 4424(E), makes changes to paragraph 5 of Annexure (i., the outlay tab) and to paragraph 46. The importance of this history is that the rules are not contained in a single notification. Legal Effect of the Amendment The changes apply from 10 August 2026, the date of publication in the Gazette. The notification substitutes or revises only the provisions it names. Other scheme conditions remain in effect unless another valid document changes them. The scheme is not a general ban or licence law. A business may choose not to seek the incentive. Once an Original Equipment Manufacturer, or OEM, enters the scheme and claims government support, it must comply with the scheme's conditions. Incorrect claims can lead to recovery and other consequences under the operational documents. Scope and Applicability Businesses and Stakeholders Covered The latest amendment directly affects the financial and time framework of the PM E-DRIVE Scheme. It is especially relevant to: Manufacturers of registered electric two-wheelers Approved EV dealers and distribution networks Battery and EV component suppliers Testing and certification agencies Fleet operators and corporate buyers Finance, leasing and insurance businesses linked to EV sales Compliance, legal, accounts and claim-management teams Buyers of eligible registered electric two-wheelers The amendment also confirms that the registered e-3W L5 component is closed. Businesses dealing in that category should not read the overall 2028 date as a reopening of L5 support. Vehicle Coverage The revised table deals with registered electric two-wheelers. The official scheme portal explains that eligible e-2Ws may include commercial, private and corporate-owned registered vehicles, subject to the scheme conditions. It also states that the incentive is intended for vehicles that use an advanced battery. Businesses should check the current approved-model list and operational instructions before promising an incentive to a buyer. The notification does not create a fresh incentive for every electric vehicle. It does not, by itself, approve a manufacturer, dealer or model. It also does not replace testing, certification, registration, localisation or claim requirements contained in the wider scheme documents. What Has Changed Under the PM E-DRIVE Scheme Amendment 2026? Revised Scheme Outlay and Duration The notification states that the PM E-DRIVE Scheme has an outlay of ₹11,900 crore. It says the scheme is being implemented from 1 April 2024 to 31 March 2028. The 1 April 2024 starting point includes the Electric Mobility Promotion Scheme 2024 (EMPS-2024). EMPS-2024 ran from 1 April 2024 to 30 September 2024. Its vehicle numbers and expenditure were brought into PM E-DRIVE. This means EMPS spending is included in the PM E-DRIVE outlay. It is not a separate extra amount added on top. Larger Registered E-2W Target The maximum number of registered electric two-wheelers eligible for support is now 45,79,120. This is a scheme ceiling, not a promise that every vehicle will receive support. A claim must still meet the applicable eligibility and process rules. Funding must also remain available. If the e-2W allocation finishes first, the component may close before the target date. Revised Electric Two-Wheeler Incentive The notification presents two incentive periods: Period Incentive rate Maximum per vehicle Financial year 2024-25 ₹5,000 per kWh ₹10,000 1 April 2025 to 31 March 2028 ₹2,500 per kWh ₹5,000 The current rate for the later period is ₹2,500 per kilowatt-hour, capped at ₹5,000 per vehicle. A kilowatt-hour, written as kWh, measures battery energy capacity. There is another limit. The incentive cannot exceed 15% of the eligible vehicle's ex-factory price. Therefore, the payable amount is limited to the lower of the kWh-based amount, the per-vehicle cap, and 15% of the ex-factory price. Maximum Ex-Factory Price An eligible registered e-2W must remain within the maximum ex-factory price of ₹1.5 lakh. Ex-factory price means the price at the factory gate before items such as registration, insurance and some on-road charges are added. Businesses should not confuse this with the customer’s on-road price. Pricing managers need to maintain proper documentation of how the ex-factory price was determined and how the incentive was passed down the distribution chain. Revised E-2W and Administrative Outlay The total MHI fund support for registered e-2Ws is ₹2,767 crore. The notification also provides ₹55 crore for administrative expenses. Administrative expenses are money used to run and manage the scheme. It is not an extra consumer incentive. The notification allows fungibility among administrative sub-heads. In simple terms, money may be reallocated among different administrative expense categories, subject to the scheme's overall administrative allocation. Fund-Limited Closure Rule Paragraph 46 now clearly states that the scheme is fund-limited. Total payment cannot exceed ₹11,900 crore. A sub-component may close if its available funds are exhausted before 31 March 2028. After closure, no further claims will be entertained. Businesses should therefore avoid treating the terminal date as a guaranteed sales window. Live fund availability, approved targets and official closure notices remain important. Registered E-3W L5 Closure E-3W L5 category sales registration target was met. The segment was closed off on December 26, 2025. MHI communicated this in an Office Memorandum dated December 23, 2025. This amendment confirms this. The extended deadline to 2028 does not reopen the L5 segment. L5 must be differentiated from other e-3W segments in any discussion regarding scheme availability. Implementation Timeline and Norms Event Date Business meaning EMPS-2024 period begins 1 April 2024 EMPS vehicle numbers and spending are later included in PM E-DRIVE EMPS-2024 period ends 30 September 2024 PM E-DRIVE follows the earlier promotion period EMPS-2024 period ends Original PM E-DRIVE notification 29 September 2024 Original scheme framework issued through S.O. 4259(E) Lower later-period e-2W incentive begins 1 April 2025 ₹2,500 per kWh, capped at ₹5,000, subject to the 15% rule Registered e-3W L5 closes 26 December 2025 Later L5 claims are not accepted under the closed component Latest amendment takes effect 10 August 2026 Revised outlay, e-2W table and claim rules apply Last date to submit any claim 31 December 2027 Claims must reach MHI/PMA by this date Scheme terminal and payment date 31 March 2028 MHI/PMA will make no payment after this date The three-month gap between the claim deadline and payment deadline gives time for review and processing. It does not promise payment for an incomplete or ineligible claim. Operational updates to the MHI portal will be necessary following the issuance of a new Gazette notification. Companies need to act on the Gazette notification before using the portal instructions. Any questions arising regarding sales or registration after the end date of the earlier segment must be clarified with MHI or the PMA before booking as a receivable. Why Was This Implemented? Faster Electric Vehicle Adoption The notification repeats three main scheme goals. The first is faster adoption of electric vehicles. An upfront demand incentive can reduce the effective buying price. A lower price can help more people and businesses consider an electric vehicle. Charging Infrastructure and Manufacturing Development The broader policy also supports the development of charging infrastructure and the EV manufacturing ecosystem as a whole. A vehicle subsidy is effective only if the buyer can easily charge their vehicle and obtain spare parts and service. The policy thus goes beyond just subsidizing a single vehicle purchase. Policy Consistency along with Budgetary Considerations This amendment ensures more time for implementation and a larger overall budget for the scheme. It still maintains a very clear financial cap on spending, which helps ensure consistency without guaranteeing endless government payouts. The lower e-2W subsidy rate post-1 April 2025 is another illustration of reducing incentives. In its notification, the government has indicated that the per-kWh subsidy will be revised as vehicle costs fall. Impact on Businesses Electric Two-Wheeler Manufacturers The larger supported vehicle ceiling creates a wider possible sales base. Manufacturers can plan products and dealer supply for a longer period. However, they must not count the entire target as assured demand. The lower per-vehicle cap places more pressure on product cost. An OEM may need to balance battery size, performance, ex-factory price and customer value. The ₹1.5 lakh price ceiling is especially important for premium models. Manufacturers also face claim timing risk. A vehicle may be sold, but the related claim can fail if the model, certificate, invoice, registration or supporting record does not meet the applicable rules. Dealers and Distributors Dealers are the main customer-facing link. They must explain the incentive carefully. They should not advertise the subsidy as guaranteed merely because a model appears eligible. Dealer invoices and customer records must match the OEM's claim data. The operational guidelines require that the incentive benefit be passed on to the customer through a reduced purchase price. Any mismatch may delay or weaken the claim. Battery and Component Suppliers An increase in e-2W beyond what is currently possible will drive greater demand for components such as batteries, motors, controllers, and chargers. The suppliers involved in the Phased Manufacturing Programme should have traceable documentation. Any change in supply or component specifications may affect vehicle compliance. MSMEs and Start-ups Smaller businesses may gain from a longer market window. They may supply parts, software, charging services, maintenance or fleet solutions. The burden can be heavier for them because they have smaller legal, testing and finance teams. A delayed claim may also affect cash flow more sharply. Clear internal ownership is therefore important. Buyers and Fleet Operators Eligible buyers may receive a lower effective vehicle price. Fleets may also gain from a wider choice of supported e-2Ws. However, the scheme is fund-limited. A buyer should confirm eligibility and the availability of incentives before completing the purchase. The final invoice should clearly show the benefit passed to the customer. How Businesses Will Achieve Compliance? The latest amendment mainly changes funding, targets and deadlines. It does not restate the entire compliance process. Existing duties come from the original scheme and operational guidelines. Confirm Business, Model and Vehicle Eligibility An OEM should first confirm that it is properly registered under the scheme. The relevant vehicle model or variant should have a valid PM E-DRIVE approval for the applicable period. As per the official guidelines on operational procedures, authorised testing agencies test eligible models. The eligible model should comply with the Central Motor Vehicles Rules and the automotive standards notified under the scheme. Control the Ex-Factory Price The eligible e-2W ex-factory price must not exceed ₹1.5 lakh. Pricing, finance, and sales teams should use a single approved price record. If a model's design or ex-factory price changes, the OEM should check whether fresh validation is required. A commercial change should not be made without checking its effect on the scheme certificate. Calculate and Pass on the Correct Incentive For the period between 1 April 2025 and 31 March 2028, the e-2W incentive is calculated at ₹2,500 per kWh. The cap for the vehicle is ₹5,000. The 15% ex-factory cap also applies. The incentive stated on the invoice must align with the approved calculation. The operational documentation states that the benefit should be delivered to the consumer as a reduced purchase cost. The same vehicle cannot be claimed twice. Maintain Complete Records Relevant records may include: OEM registration and approval documents Valid model eligibility certificate. Type-approval and testing records. Battery capacity and technical specifications Ex-factory price approval and revision history Dealer and customer invoices Vehicle identification and registration details. Proof that the incentive reached the customer Claim submission, acknowledgement and query records Board authorisation and authorised-signatory records Supplier and localisation evidence where applicable This list combines express operational records with sensible internal controls. The exact claim pack should follow the current portal and PMA instructions. Keep Certificates and Production Compliance Current The operational guidelines require approved EV models to undergo Conformity of Production testing for scheme eligibility parameters at least once a year. Conformity of Production means checking that vehicles made in regular production still match the approved model. OEMs should monitor certificate expiry and apply for revalidation in time. They should also report material product or supply-chain changes when required. A certificate should be valid when the applicable manufacturing, sale and registration events occur under current rules. Submit Claims Before the Final Date The legal deadline date is 31 December 2027. It would be risky to wait till the last minute. An erroneous entry, a glitch on the portal, or an error in the data might require correction. Businesses should set an earlier internal deadline. Accounts should reconcile vehicle sales, registrations, claims made, claims approved, and payment receipts. There should be an owner for each rejected or pending claim. Monitor Funds and Official Instructions The scheme can close early. Compliance teams should monitor: Gazette notifications MHI and PM E-DRIVE portal announcements PMA instructions Approved-model status Segment targets and fund position Claim windows and technical updates Sales teams should receive the same updates.  This prevents an old incentive message from being given to a customer after a component closes. Benefits for Businesses The PM E-DRIVE Scheme amendment 2026 offers several possible benefits: A longer policy period helps businesses plan products and investment. The higher e-2W ceiling creates room for more supported sales. Demand support can make eligible e-2Ws easier for buyers to afford. A clear outlay helps manufacturers understand the size of government support. Charging and manufacturing goals can strengthen the wider EV system. Clear claim and payment dates support better internal planning. Domestic component businesses may gain from higher vehicle production. Testing, software and compliance businesses may serve a growing formal market. These are opportunities, not guaranteed results. Actual value depends on eligibility, market demand, fund availability and correct execution. Challenges and Cost Implications The amendment also creates practical pressure. The later-period incentive is lower than the FY 2024-25 rate. Manufacturers may need to absorb more cost or ask buyers to pay more. The ₹1.5 lakh ex-factory ceiling limits the models that can qualify. Premium features may push a vehicle above this limit. Product and pricing decisions must therefore be linked. Compliance work also costs time and money. Testing, certification, record control, dealer training, portal filing and claim reconciliation need skilled people. Smaller businesses may find this harder. The fund-limited rule creates uncertainty. A company may plan sales until 2028, but a segment can close earlier. This makes careful cash-flow and inventory planning necessary. Is This a Right Decision or an Additional Burden? Why It Is a Reasonable Policy Decision The amendment gives the EV market more time and a larger financial base. It also sets clear limits. This can support electric mobility without allowing spending to remain open-ended. The higher e-2W ceiling matches the strong role of scooters and motorcycles in Indian travel. Electric two-wheelers can serve families, delivery workers, small firms and fleets. Supporting this segment can therefore have broad use. Why Businesses May Consider an Added Burden It requires strict control over model approvals, pricing, batteries, invoicing, registration, and claims. With a lower incentive, there may be less of a sales advantage as well, despite ongoing compliance efforts. Fund ceilings create burdens. A company cannot take the risk that all apparently eligible sales lead to approved claims. Balanced Assessment The policy orientation is justifiable because it ensures continuity and supports the large-vehicle sector. There is also assurance of the use of public money through ceiling amounts and deadlines. To businesses, the amendment brings both an advantage and an obligation. It is not difficult when there is early control of recordkeeping, certificates, dealerships, and claims. Otherwise, it can become expensive after a sale. Risks and Consequences Businesses Should Consider The latest notification expressly says that no further claim will be considered after a component closes. It also says no MHI/PMA payment will be made after 31 March 2028. The wider operational documents carry further risks. Wrong data, double claim, failure to pass on the incentive to the consumer, or model ineligibility may result in claim rejection or recovery. Major infringements may be punished more severely under the relevant scheme documents. Businesses can minimize their risks by: Using one controlled source for model and price data Training dealers before a new incentive period starts Matching invoice and registration information. Reviewing certificates every month. Reconciling claims and payments regularly Keeping a clear audit trail for every supported vehicle Escalating portal or eligibility doubts before sale Business Opportunities Created Affordable Electric Two-Wheelers The extended e-2W limit enables a larger market for affordable electric scooters and motorcycles. Manufacturers who can manage their costs within the ex-factory limit are likely to be at an advantage. EV Components and Battery Systems The increase in vehicles may necessitate more sophisticated batteries, battery management systems, electric motors, controls, electronics, and thermal systems. Suppliers that keep high-quality records will make better partners for the approved OEMs. Testing, Data and Compliance Services Assessments of models, certificates, production tests, and claims create a need for specialists. Software companies can develop solutions for dealer data management, document management, vehicle reconciliation, and deadline management. Charging, Fleet and Finance Services The wider PM E-DRIVE programme continues to support the EV ecosystem. Charging operators, fleet management companies, leasing firms, insurers, and lenders may benefit as more EVs are registered in the market. Regional Dealer and Service Networks The creation of more supported e-2Ws could drive demand even outside big cities. Firms could create networks for sales, repairs, battery services, and even spares. These would vary depending on customer demand and scheme eligibility. Recommended Action Plan for Businesses Check for Applicability: Verify Company name, Model number, Vehicle type, and sales period. Check for Approvals: OEM Registration, Model Approval, Tests, and Certificate Validity. Control on Pricing: ₹1.5 lakh is the cap on the ex-factory price and on incentive calculations. Train Dealers: Provide detailed instructions on Invoices, Customer papers, and scheme messages. Match Records: Match manufacturing records with sales, registration, and claim details. Establish an early deadline: Process claims well before 31st December 2027. Monitor Funding: Follow official notification, Portal instructions, and components. Keep Records for Review: Maintain all records in relation to each vehicle claimed. How Can Corpseed Help? Corpseed can support EV businesses that need clear, practical help with the new scheme position. Relevant EV regulatory compliance services may include: PM E-DRIVE Eligibility Assessment Check whether the business qualifies under the scheme. Review the eligibility of each EV model. Confirm the applicable incentive period and conditions. OEM Registration and Approval Support Assist with OEM registration under PM E-DRIVE. Prepare and review registration documents. Coordinate responses to regulatory queries. Vehicle Testing and Certification Coordinate with recognised vehicle-testing agencies. Review technical and battery-related information. Track certification, revalidation and approval status. Incentive and Pricing Review Check the applicable per-kWh incentive. Review the ₹1.5 lakh ex-factory price limit. Verify the per-vehicle and 15% incentive ceilings. Claim Documentation Support Prepare and organise claim documents. Check invoices, registrations and customer records. Review claims before submission to MHI or the PMA. Compliance Gap Assessment Identify missing approvals and expired certificates. Find errors in pricing, invoices and claim records. Recommend corrective actions before filing a claim. Ongoing Compliance and Deadline Monitoring Monitor Gazette notifications and scheme updates. Track claim, certificate, and payment deadlines. Help businesses maintain complete compliance records. Businesses seeking EV regulatory compliance services can consult Corpseed for an applicability review, documentation support, and a practical PM E-DRIVE compliance plan tailored to their vehicle category and operations.

Subject

Summary: The Ministry of Heavy Industries (MHI) has updated the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components (PLI-Auto) in India, effective from 13th January 2026. The amendment changes the performance criteria for Battery Electric Vehicles (BEVs) to qualify for incentives. Earlier, BEVs had to follow the FAME-II scheme, but now they must meet specific standards mentioned in Table 1A of the notification.  These standards cover different types of BEVs, including two-wheelers, three-wheelers, four-wheelers, e-buses, trucks, and quadricycles, and are based on the PM E-DRIVE and FAME-II schemes. Two-wheelers and three-wheelers must follow Annexure-3 of the PM E-DRIVE Scheme, trucks follow Annexure-3A, and quadricycles must meet minimum requirements for range, speed, acceleration, and energy consumption as per Appendix-1.  All BEVs must be tested by MHI-approved agencies, and every vehicle should have an Electric Regenerative Braking System. Testing follows the Central Motor Vehicles Rules (CMVR) standards to ensure accuracy in energy efficiency, speed, and acceleration. This amendment replaces all previous references to BEV performance criteria in the PLI-Auto scheme. The update encourages high-quality manufacturing, ensures measurable performance standards, and supports India’s goal of promoting electric mobility by offering clear incentives to eligible BEVs.

Subject

Summary: The Electrical Equipment (Quality Control) Order, 2020 (EEQCO 2020), issued under the authority of the Bureau of Indian Standards Act, 2016, sets out mandatory conformity requirements for specified electrical equipment. Following the Electrical Equipment (Quality Control) Amendment Order, 2023, and the Electrical Equipment (Quality Control) Second Amendment Order, 2024, the Ministry of Heavy Industries has now issued a notification deferring the enforcement dates for most product categories listed in the amendment table, excluding those at Sr. No. 1.1(a), which came into force on 10 November 2024.  The deferment, announced under S.O. 2007(E) dated 5 May 2025, extends the timeline for compliance “until further orders”. Manufacturers, importers, and distributors of product categories such as low-voltage switchgear and control gear should take note: while the compliance obligation remains operative in principle, enforcement will not begin until a later date. Stakeholders are advised to monitor updates and align their certification and supply-chain processes accordingly.