Under the PM E-Drive scheme, the central government has allocated a total of ₹10,900 crore. Under the Ministry of Heavy Industries (MHI), the PM E-Drive will provide subsidies or demand incentives worth ₹3,679 crore to incentivise electric two-wheelers, electric three-wheelers, electric ambulances, electric trucks and other EVs. 

The PM E-Drive has no budgetary allocation to provide incentives for electric cars or hybrid cars. This means, the PM E-Drive will not support electric passenger vehicle buyers, which was a benefit offered by the FAME scheme to the EV buyers. However, an official statement by the government has stated that PM E-Drive scheme will support 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 electric buses.

Besides providing subsidies and demand incentives for electric two-wheelers, electric three-wheelers, electric ambulances, electric trucks and other EVs; the PM E-Drive also aims to boost the development of electric vehicle charging infrastructure across India. The scheme will support 88,500 electric vehicle charging sites across the country. The PM E-Drive proposes installation of 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for electric buses and 48,400 fast chargers for electric two-wheelers and three-wheelers with an budgetary outlay of ₹2,000 crore.

Under the PM E-Drive scheme, during the time of purchase of the electric vehicle, the dedicated portal will generate an Aadhaar authenticated electronic voucher for the EV buyer. He or she will receive a link to download the e-voucher in his or her registered mobile number. The buyer will sign the e-voucher and submit to the dealer to avail of demand incentives under the scheme. The dealer too will sign the e-voucher and upload on PM E-Drive's dedicated portal. The signed e-voucher will be sent to the buyer and dealer through an SMS. The auto manufacturers can claim reimbursement of demand incentives under the scheme by submitting the signed e-vouchers to the government. This means, the EV buyers will not get any direct subsidy in their respective bank accounts, but they will be able to buy the EV at a discounted price, while the OEM will claim the reimbursement from the government for giving the subsidy to the customer.