The Indian government has launched a new initiative aimed at promoting the adoption of electric vehicles (EVs) in the country. Implemented by the Ministry of Heavy Industries, this scheme officially began on April 1, following the conclusion of the FAME scheme on March 31.
Under the earlier Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) program, subsidies were available for EVs sold until March 31 or until funds were depleted. The new scheme, named the Electric Mobility Promotion Scheme 2024 (EMPS 2024), has a budget of INR 500 crore and will run until the end of July.
EMPS 2024 offers incentives of up to INR 10,000 for each electric two-wheeler, benefiting approximately 3.33 lakh such vehicles. Additionally, small three-wheelers like e-rickshaws and e-carts are eligible for subsidies of up to INR 25,000, with over 41,000 vehicles expected to benefit. Large three-wheelers can receive financial support of up to INR 50,000.
This limited fund scheme, announced by the Heavy Industries Ministry on March 13, aims to boost the adoption of electric two-wheelers and three-wheelers from April 1 to July 31, 2024. The initiative is designed to promote green mobility and bolster the EV manufacturing ecosystem in line with the Atmanirbhar Bharat initiative. By supporting the manufacturing of EVs with advanced batteries and implementing the Phased Manufacturing Programme, EMPS 2024 seeks to strengthen domestic production and create employment opportunities across the EV supply chain.
