Centre notifies PM E-DRIVE incentives for e-ambulances, earmarking Rs 500 Cr to support 3,811 units by FY28
Eligible e-ambulances can receive incentives of up to 35% of the ex-factory price or Rs 30,000 per kWh, whichever is lower
The notification brings clarity to a segment that has seen limited adoption despite India adding 10,000-12,000 ambulances annually
In a bid to accelerate the adoption of EVs in the healthcare sector, the ministry of heavy industries (MHI) has extended the benefits of the PM E-DRIVE scheme to electric ambulances (e-ambulances).
The government has set aside ₹500 Cr under the scheme with an aim to support 3,811 electric ambulances over the next two financial years — 1,797 units in FY27 and 2,014 units in FY28.
The government’s notification, issued on June 17, lays out the eligibility criteria, incentive structure, performance standards and localisation requirements for electric ambulances.
The scheme will cover three categories of e-ambulances — patient transport vehicles (Type B), basic life support (BLS) ambulances (Type C) and advanced life support (ALS) ambulances (Type D) — as defined under AIS 125.
The demand incentive for eligible e-ambulances will be the lower of:
The ex-factory price will only cover the base ambulance vehicle. Any additional medical equipment or specialised systems installed in the ambulance will have to be invoiced separately and will not be considered while calculating incentives.
The scheme’s benefits will not be limited to private buyers. Central and state government departments, along with their agencies and public sector undertakings (PSUs), will also be eligible for incentives.
The notification further states that these incentives will be available in addition to support provided under government healthcare programmes such as the national health mission (NHM).
To qualify for incentives, e-ambulances must comply with multiple safety and technical standards, including AIS 145 for additional vehicle safety features and AIS 038 Rev 2 governing electric powertrains.
For M1 and M2 category ambulances, the scheme mandates:
For larger M3 category ambulances, the minimum range remains 140 km, with energy consumption limits of up to 100-140 kWh per 100 km depending on vehicle size.
Manufacturers will be required to provide a minimum warranty of five years or 1.25 Lakh km, whichever is earlier, on the battery, motor and vehicle.
Important to highlight that the government had announced its intent to notify an ₹500 Cr incentive for e-ambulance deployment in its initial PM E-DRIVE announcement.
Introduced in September 2024 with an outlay of ₹10,900 Cr, PM E-DRIVE is aimed at accelerating EV adoption, expanding charging infrastructure and strengthening domestic EV manufacturing.
The scheme offers incentives for E2Ws, E3Ws, e-buses, trucks, with allocations of ₹3,679 Cr for EV subsidies, ₹4,391 Cr for e-buses, ₹2,000 Cr for charging infrastructure, ₹780 Cr for testing facilities and ₹500 Cr each for e-trucks and e-ambulances.
To note, the e-ambulance segment remained largely untapped due to the absence of commercially available models and a lack of clarity around incentive and operational frameworks till now.
The latest notification seeks to address this by outlining the incentive structure, eligibility criteria, performance standards and localisation requirements for e-ambulances.
The move comes as India adds around 10,000-12,000 ambulances annually, the vast majority of which run on conventional fuels. While automakers such as Maruti Suzuki and Force Motors have showcased prototype electric and hybrid ambulances, commercial deployment remains at a nascent stage.
Source: Inc42 - Startups
