Centre unveils new scheme to drive electric vehicle adoption

BNE News Desk

Spread the love

New Delhi: The central government has rolled out the Electric Mobility Promotion Scheme 2024 (EMPS 2024), succeeding the FAME II initiative, with a focus on accelerating the uptake of electric two-wheelers (e2W) and three-wheelers (e3W) equipped with advanced batteries through targeted subsidies.

With an allocated budget of Rs 500 crore, EMPS 2024 aims to facilitate the adoption of 3,72,215 electric vehicles, comprising e2Ws and e3Ws, within the next four months (April to July 2024). The scheme offers subsidies of up to Rs 10,000 for e2Ws and up to Rs 25,000 for smaller e3Ws such as e-rickshaws and e-carts. Larger e3Ws are eligible for subsidies of up to ₹50,000.

Minister for Heavy Industries, Mahendra Nath Pandey, emphasized the strategy behind reducing subsidies, citing increased demand while preparing the industry for a subsidy-independent future. The Rs 500 crore allocation is projected to support approximately 400,000 e2Ws and e3Ws throughout the scheme's duration.

EMPS 2024 supersedes the FAME II initiative, which debuted in 2019 with an initial budget of Rs 10,000 crore, later supplemented with an additional Rs 1,500 crore. FAME II targeted various electric vehicle categories, including e-buses, three-wheelers, two-wheelers, and e-passenger cars. However, during the interim budget, Finance Minister Nirmala Sitharaman earmarked Rs 2,671 crore for FAME III, indicating a 44% reduction from the previously allocated amount.

The scheme is expected to play a pivotal role in advancing India's electric mobility agenda. 

ALSO READ: IIT Guwahati partners with Samagra Shiksha Assam to host mega Science and Maths Olympiad

BNE News Desk