Govt extends EMPS scheme until Sept 2024
The Ministry of Heavy Industries, in a notification published on 26 July, 2024, announced that it has extended the Electric Mobility Promotion Scheme (EMPS) for two months or until September this year, indicating that the third-edition of the FAME scheme will not be implemented before 30 September. This initiative was supposed to offer subsidies between 1 April, 2024 and 31 July, 2024, with an overall outlay of Rs 500 crore. Now, with the extension, the Indian government has also increased the expenditure by Rs 278 crore, totalling to Rs 778 crore.
The extended period of the Electric Mobility Promotion Scheme is said to bridge the gap between the previous FAME 2 and the upcoming FAME III schemes. In fact, the Government presented the Union Budget 2024-25 with no direct announcements on subsidies for electric vehicles (EVs). However, it has already drawn up a draft proposal for the new FAME III with an outlay of Rs 10,000 crore. According to sources of CNBC TV-18, it may require additional time to finalise the scheme. Ministries are currently discussing the budget distribution and the types of vehicles that should be included in the new scheme.
The incentive scheme is limited to electric two-wheelers and three-wheelers. It offers subsidy of up to Rs 10,000 for two-wheelers, up to Rs 25,000 for small electric three-wheelers, and up to Rs 50,000 for large electric three-wheelers.
According to Minishtry of Heavy Industries, the extended scheme now targets to support 5,60,789 electric vehicles (EVs). These include 5,00,080 electric two-wheelers and 60,709 electric three-wheelers. This includes 13,590 rickshaws and e-carts and 47,119 e-3Ws in the L5 category. It will be applicable mainly to e-2W and e-3Ws registered for commercial purposes and privately or corporate-owned e-2W will also be eligible.
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