Govt extends electric mobility scheme by 2 months with additional ₹278 cr outlayThe scheme provides incentives for electric two-wheelers and three-wheelers, including registered e-rickshaws, e-carts, and L5 category vehicles. These incentives are designed to promote affordable and eco-friendly public transportation options.
Alisha Sachdev
Published26 Jul 2024, 10:07 PM IST
Initially set to conclude on 31 July, the scheme’s extension is accompanied by an increased financial outlay from ₹500 crore to ₹778 crore.
The Union ministry of heavy industries (MHI) on Friday announced the extension of the electric mobility promotion scheme 2024 (EMPS 2024) by two months till 30 September 30.
Initially set to conclude on 31 July, the scheme's extension is accompanied by an increased financial outlay from ₹500 crore to ₹778 crore.
Launched on March 13 as a stop-gap arrangement ahead of the end of FAME-II, which drew to a close on 31 March, EMPS provides incentives for electric two-wheelers and electric three-wheelers, including registered e-rickshaws, e-carts, and L5 category vehicles. These incentives are designed to promote affordable and eco-friendly public transportation options, primarily targeting commercially registered e-2Ws and e-3Ws, the MHI said on Friday. Additionally, privately or company-owned registered e-2Ws are also eligible for the benefits.
Play
Unmute
Loaded: 2.62%
Fullscreen
Read more: BMW is winning big in EVs this year but says adoption is slowing down
On 23 July, the ministry had stated that the EMPS, a demand-incentive scheme meant to act as a bridge between the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) II and the upcoming FAME III scheme, had limited funds. The government clarified that subsidy claims would only be entertained until the scheme's ₹500-crore outlay was exhausted or until the scheme's end on 31 July.
With the original outlay of ₹500 crore, EMPS 2024 offered incentives for up to 333,387 e-2Ws and 40,828 e-3Ws. As of Tuesday, companies had raised claims totaling ₹54.42 crore for 41,557 vehicles, according to the government's EMPS dashboard. This indicated a significant runway was left for claims to be made over the next two to four weeks, by which time the new iteration of the FAME III scheme was expected to be introduced.
However, the MHI has now decided to extend the scheme by two months, indicating that the new FAME III will not come into effect before 30 September. The extension and enhanced outlay ensure continued support for EV adoption in the interim period.
Read more: No direct steps, but there's still budget cheer for car, 2-wheeler, tractor cos
The component-wise allocation of the enhanced outlay includes ₹769.65 crore for subsidies and demand incentives for e-2Ws and e-3Ws, and ₹8.35 crore for the administration of the scheme, including information, education and communication (IEC) activities and project management agency fees. The revised target under the scheme now supports 560,789 EVs, comprising 500,080 e-2Ws and 60,709 e-3Ws, including 13,590 e-rickshaws and e-carts, and 47,119 L5 category e-3Ws. To qualify for incentives, EVs must be equipped with advanced batteries, ensuring the promotion of cutting-edge technologies within the sector.