he Indian government is taking another step to accelerate the adoption of electric vehicles (EVs) in the country. Following the conclusion of the FAME 2 scheme on March 31, 2024, the Ministry of Heavy Industries has launched the Electric Mobility Promotion Scheme 2024 (EMPS 2024).

This new initiative boasts a total budget of ₹500 crore and will run for a limited period, from April 1st to July 31st, 2024. The primary focus of EMPS 2024 is to incentivize the purchase of electric two-wheelers (e-2Ws) and electric three-wheelers (e-3Ws).

Target and Incentives

EMPS 2024 aims to support the purchase of a significant number of electric vehicles – 372,215 to be exact. This breakdown includes 333,387 e-2Ws and 38,828 e-3Ws. The latter category further divides into 13,590 low-speed e-rickshaws and e-carts, along with 25,238 L5 category e-3Ws. Importantly, the scheme prioritizes vehicles equipped with advanced batteries.

To incentivize purchase, EMPS 2024 offers a demand incentive of ₹5,000 per kWh, capped at 15% of the vehicle’s ex-factory price. This translates to a tiered incentive structure based on vehicle type:

  • E-2Ws: Maximum ex-factory price of ₹1,50,000 with an incentive capped at ₹10,000 per vehicle.
  • Low-speed e-rickshaws and e-carts: Maximum ex-factory price of ₹2,50,000 with an incentive capped at ₹25,000 per vehicle.
  • L5 e-3Ws: Maximum ex-factory price of ₹5,00,000 with an incentive capped at ₹50,000 per vehicle.

Additional Details

The scheme allocates ₹6.45 crore for administrative costs. An inter-ministerial committee headed by the Secretary (Heavy Industries) will oversee the scheme’s implementation, monitoring, and approval processes. It’s important to note that the incentives offered under EMPS 2024 are independent of and supplement those provided by existing schemes like the Production-Linked Incentive (PLI) for the automobile and auto components industry (PLI-Auto) and the PLI scheme for Advanced Chemistry Cell (PLI-ACC).

Alignment with Aatma-Nirbhar Bharat

The launch of EMPS 2024 aligns with the government’s vision of Aatma-Nirbhar Bharat (Self-reliant India). The scheme complements the Phased Manufacturing Programme (PMP), which aims to strengthen the domestic EV supply chain and create employment opportunities by promoting local manufacturing.

In conclusion, the introduction of EMPS 2024 signifies the government’s continued commitment to fostering the adoption of electric vehicles in India. This targeted scheme, with its focus on specific vehicle segments and incentives, aims to provide a significant boost to the country’s electric mobility landscape.