In Big EV Boost, Rs 500 Crore Electric Mobility Promotion Scheme Starts April 1

Electric Mobility Promotion Scheme 2024 follows the FAME-II program which ended on March 31 this year

The Electric Mobility Promotion Scheme (EMPS) 2024, an initiative aimed at boosting the adoption of electric vehicles, begins today and will continue through July 31, 2024. With a budget allocation of Rs 500 crore, the policy intends to offer subsidies for the production of electric two-wheelers and three-wheelers.

EMPS 2024 follows the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) program, which ended on March 31, 2024. It shows the government’s commitment to speed up the adoption of electric vehicles (EVs) throughout the country.

Incentives for Two-Wheelers and Three-Wheelers:

EMPS 2024 provides substantial incentives for electric two-wheelers and three-wheelers. The goal is to enhance the adoption of eco-friendly vehicles in India.

  • Two-Wheelers: Offers support of Rs 10,000 for about 3.37 lakh electric two-wheelers (e2w) with an incentive of Rs 5000 (per KWH). It is the same for the other vehicle types in this scheme.
  • Small Three-Wheelers: Offers support of Rs 25,000 for 41306 electric three-wheelers (e3w) and 13590 electric rickshaws (e-ricks).
  • Large Three-Wheelers: For 25238 large electric three-wheelers (L5 e3w), there will be monetary aid of Rs 50,000. 

Promoting Advanced Technologies:

Electric Mobility Promotion Scheme
(Representative Image: Ola)

Moreover, the Electric Mobility Promotion Scheme 2024 focuses on innovation, encouraging the advancement of technology in EVs, especially those featuring advanced battery technology. Also, it is in line with the government’s vision for promoting a transportation network that is greener and technologically advanced.

EMPS 2024, aligned with the Atmanirbhar Bharat initiative, strives to develop a strong and competitive EV manufacturing industry in India.

A Phased Manufacturing Program is now in place to promote local manufacturing and enhance the EV supply chain. Thereby, it will generate job opportunities across various stages of production.

Budget Allocation

Electric Mobility Promotion Scheme 2024 has been allocated a total budget of Rs 500 crore. This highlights the government’s dedication to encouraging the adoption of electric mobility.

Moreover, the interim budget allocated Rs 2671.33 crore for the FAME III scheme. However, the government will disclose the additional information in the main budget slated for July 2024.

Government Initiatives to Promote EVs

To position India as a manufacturing hub for e-vehicles, the government announced a policy of limited car imports with lower customs duties. It was a move to attract major global EV players like Tesla and BYD.

Leveraging the benefit mandates companies to establish manufacturing units in India within three years and reach a localization level of 50% within five years.

Also, sanctioned in FAME-II Scheme, the Ministry of Heavy Industries (MHI) authorized the establishment of 2,877 EV charging stations in 68 cities across 25 states and Union Territories.

With these government initiatives, Indian consumers will have access to the latest technology and boost the Make in India initiative.