The revised scheme will now target supporting 5.6 Lakh EVs, including 5 Lakh two-wheelers and 60,709 three-wheelers
While INR 769.65 Cr has been earmarked for subsidising the cost of eligible EVs, INR 8.35 Cr has been set aside for the administration of the scheme
It is pertinent to note that the MHI had allocated INR 500 Cr for the new EV mobility scheme earlier this year, which was initially valid till July 2024
The Centre has extended the duration of the electric mobility promotion scheme (EMPS) 2024 by two months till the end of September.
In a statement, the Ministry of Heavy Industries (MHI) said that the outlay of the scheme has been increased to INR 778 Cr from INR 500 Cr previously.
The scheme will look to subsidise the cost of electric two-wheelers and three-wheelers, including registered electric rickshaws, e-carts and L5 category of electric three-wheelers.
The revised scheme will now target supporting 5.6 Lakh electric vehicles (EVs), including 5 Lakh two-wheelers and 60,709 three-wheelers. Giving a breakdown of the data, the MHI said that 13,590 rickshaws and e-carts as well as 47,119 L5 three-wheelers will be covered under the scheme.
“With greater emphasis on providing affordable and environment-friendly public transportation options for the masses, the scheme will be applicable mainly to those e-2W and e-3Ws registered for commercial purposes. Further, in addition to commercial use, privately or corporate owned registered e-2W will also be eligible under the scheme,” the statement said.
Of the total budget, INR 769.65 Cr has been earmarked for subsidising the cost of eligible vehicles. The remaining INR 8.35 Cr has been set aside for the administration of the scheme, including for purposes such as information, education and communication activities and fee for project management agency.
The government also said that the incentives under the rehashed scheme will now only be available for EVs equipped with advanced batteries to “promote advanced technologies”.
“The scheme promotes an efficient, competitive and resilient EV manufacturing industry in the country… For this purpose, (a) phased manufacturing programme (PMP) has been adopted which encourages domestic manufacturing and strengthening of (the) EV supply chain. This shall also create significant employment opportunities along the value chain,” it added.
It is pertinent to note that the MHI had allocated INR 500 Cr for the new EV mobility scheme earlier this year. Initially valid till July 2024, the initiative was aimed at avoiding disruption in the EV space as the Centre’s FAME-II scheme came to an end in March 2024.
The extension comes at a time when the government is said to be working on the third iteration of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme with an estimated outlay of INR 10,000 Cr.
Additionally, the MHI is also said to be mulling a phased manufacturing programme that would have stricter localisation norms for EV manufacturers to qualify for the upcoming FAME-III scheme.
