The Centre has allocated INR 500 Cr for the new Electric Mobility Promotion Scheme 2024, which will be valid for four months till July 2024
The new special scheme for EVs aims to support 3.33 Lakh electric two-wheelers and 38,828 electric three-wheelers
The launch of the Electric Mobility Promotion Scheme 2024 comes following calls from the industry for an incentive scheme as FAME-II comes to an end on March 31
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The Ministry of Heavy Industries (MHI) has announced a new scheme to promote sale of electric two- and three-wheelers.
The Centre has allocated INR 500 Cr for the new Electric Mobility Promotion Scheme 2024, which will be valid for four months till July 2024. It is aimed at avoiding disruption in the EV ecosystem as the government’s ambitious FAME-II scheme ends on March 31.
The development comes days after it was reported that the MHI had allotted an additional outlay of INR 500 Cr to the existing FAME-II scheme, which would be extended till July, until the likely launch of the FAME-III scheme.
Of the total, INR 493.55 Cr has been earmarked for subsidies and incentives, while the remaining INR 6.45 Cr has been set aside for information, education and communication activities.
As per a government statement, the new special scheme for EVs aims to support 3.33 Lakh electric two-wheelers, 38,828 electric three-wheelers (including 13,590 rickshaws and e-carts as well as 25,238 L5 electric three-wheelers).
As per a CNBC-TV18 report, while the two-wheeler EVs will receive an incentive of 5,000 kWh, which is capped at INR 10,000, the L5 electric three-wheeler incentive is capped at INR 50,000.
Electric three-wheelers and e-rickshaws will also reportedly receive incentives of 5,000 kWh but capped at INR 25,000 each.
The launch of the Electric Mobility Promotion Scheme 2024 comes following an industry-wide demand for demand incentive schemes as FAME-II comes to an end. While the new FAME-III is expected to come with an outlay of INR 10,000 Cr, industry experts were already expecting a delay in its launch with the general election upcoming.
FAME-II was introduced in 2019 and initially had a total budget of INR 10,000 Cr for supporting the adoption of EVs in India to support 10 Lakh electric two-wheelers, 5 Lakh electric three-wheelers, 7,000 electric buses, and 55,000 electric four-wheeler passenger cars through subsidies.
Meanwhile, the finance ministry recently approved an additional budget of INR 1,500 Cr under the FAME-II programme. Under this, the subsidies allotted for electric two, three, and four-wheelers were updated to INR 7,048 Cr. Besides, a separate allocation of INR 4,048 Cr has been designated for the procurement of ebuses and the establishment of EV charging stations.
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