In a significant move to bolster the electric vehicle (EV) sector, the Indian government has announced an extension of the Electric Mobility Promotion Scheme (EMPS) 2024 by two months, extending its duration until the end of September.
This extension comes with an increased budget, now set at INR 778 crore, up from the previously allocated INR 500 crore.
The Ministry of Heavy Industries (MHI) revealed that the extended scheme will continue to subsidize electric two-wheelers and three-wheelers, including registered electric rickshaws, e-carts, and L5 category electric three-wheelers.
The revised budget aims to support 5.6 lakh electric vehicles, with a breakdown that includes 5 lakh two-wheelers and 60,709 three-wheelers.
Specifically, the scheme will cover 13,590 rickshaws and e-carts, as well as 47,119 L5 three-wheelers.
The MHI emphasized that the scheme is designed to provide affordable and eco-friendly transportation options, focusing on commercial electric two-wheelers (e-2W) and three-wheelers (e-3Ws).
However, privately or corporate-owned registered e-2Ws will also be eligible for the subsidies.
“By extending the scheme, we aim to promote a wider adoption of electric vehicles and support the transition towards a more sustainable transportation system,” said an MHI spokesperson.
The scheme’s revised allocation includes INR 769.65 crore earmarked for vehicle subsidies and INR 8.35 crore for administration, including information, education, communication activities, and project management fees.
In a bid to drive technological advancement, the revised scheme stipulates that only EVs equipped with advanced batteries will be eligible for subsidies.
This move is expected to foster a competitive and resilient EV manufacturing industry in India and encourage the domestic production of advanced technologies.
The extension of the EMPS 2024 comes as the government prepares to introduce the third iteration of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme, with an estimated outlay of INR 10,000 crore.
Additionally, the MHI is considering a phased manufacturing program with stricter localization norms for EV manufacturers, which may be incorporated into the upcoming FAME-III scheme.
The original EMPS 2024 was launched earlier this year with an initial budget of INR 500 crore to bridge the gap following the conclusion of the FAME-II scheme in March 2024.
The extension and budget increase signal the government’s commitment to advancing India’s electric mobility goals and supporting the growth of the EV sector.
