The Vinod Oswal

Centre announces new scheme to subsidise electric two and three wheelers

India’s Electric Mobility Promotion Scheme 2024 sees a four-month, ₹500 crore boost for EVs

Centre Rolls Out INR 500 Cr Scheme To Push For E-Mobility

SUMMARY

The Centre has allocated INR 500 Cr for the new Electric Mobility Promotion Scheme 2024, which will be valid for four months till July 2024

The new special scheme for EVs aims to support 3.33 Lakh electric two-wheelers and 38,828 electric three-wheelers

Vehicle Type Quantity Incentive (per KWH) Cap

Electric Two-Wheelers (e2w) 3.37 lakh ₹5000 ₹10000

Electric Three-Wheelers (e3w) 41306 ₹5000 ₹25000

Electric Rickshaws (e ricks) 13590 ₹5000 ₹25000

Large Electric Three-Wheelers (L5 e3w) 25238 ₹5000 ₹50000,

The launch of the Electric Mobility Promotion Scheme 2024 comes following calls from the industry for an incentive scheme as FAME-II comes to an end on March 31

FAME-II was introduced in 2019 and initially had a total budget of INR 10,000 Cr for supporting the adoption of EVs in India to support 10 Lakh electric two-wheelers, 5 Lakh electric three-wheelers, 7,000 electric buses, and 55,000 electric four-wheeler passenger cars through subsidies.

Centre announces Rs 500 crore scheme to promote e-mobility

The centre on Wednesday announced a new scheme to promote sale of electric two and three wheelers. According to Heavy Industries Minister Mahendra Nath Pandey, Rs 500 crore is being allocated for the Electric Mobility Promotion Scheme (EMPS), 2024. This scheme is valid for four months from 

The centre on Wednesday announced a new scheme to promote sale of electric two and three wheelers the country. According to Heavy Industries Minister Mahendra Nath Pandey, Rs 500 crore is being allocated for the Electric Mobility Promotion Scheme (EMPS), 2024. This scheme is valid for four months from April 1 onwards.

“We are committed to the growth of electric vehicles in the country and will keep encouraging their sales,” he said while announcing the scheme.

This new initiative replaces the ongoing Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME II) scheme which lapses on March 31, 2024. “Companies will need to register under the new programme to be eligible for getting subsidies,” a senior government official told ET that existing registration under FAME II scheme will not be valid for the coming programme. The window for fresh registrations opens from April 1 onwards. There are presently 192 electric vehicle (EV) models being subsidised under FAME II which is focused on supporting sale of locally made products.

This MoU represents a joint effort to launch advanced initiatives for creating a Centre of Excellence (CoE) and an Industry Accelerator at IIT Roorkee under the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector Phase II of MHI," an official release said.

The collaboration seeks to utilise the combined knowledge and resources of both organizations to support groundbreaking projects that will influence the future of transportation.

With a total grant of Rs 19.87 crore provided by MHI and an additional Rs 4.78 crore contributed by industry partners, the total project cost is Rs 24.66 crore.

New Scheme Unveiled to Push  Electric Two, Three Wheeler Sales

EMPS 2024 offers a subsidy on EVs of up to Rs 10,000 per two-wheeler, Rs 25,000 per light three-wheeler (like e-rickshaws), and Rs 50,000 per heavy three-wheeler (like autos and commercial units).

Subsidy Announced For Electric Bike, and 3 Wheels Auto Also. 50,000 Rs Govt Will Support.

Category of electric vehicle

Subsidy cap per unit (in Rs)

Two-wheeler

10,000

Light three-wheeler (e-rickshaw)

25,000

Heavy three-wheeler (auto or commercial)

50,000

The new scheme allocates Rs 333.39 crore to support sale of 3.33 lakh electric two-wheelers (e-2W) and Rs 126.19 crore for sale of 25,238 large electric three-wheelers (e-3W L5). Sale of 13,590 e-rickshaw type electric three-wheelers (e-3W) is to be supported through the Rs 33.97 crore allocation under the EMPS, 2024.

EMPS 2024 lowers the subsidy on e2w and e3w and completely omits electric buses and four wheelers. Responding to a query on the same, the official quoted above said, “A third iteration of the FAME scheme (FAME III) will be announced after polls to cover more categories. Registrations made under the EMPS 2024 will be valid for the new scheme as well,” indicating that EMPS 2024 is a precursor to a wider scheme for supporting EV sales in India.

Government unveils Rs 500 crore scheme to boost E-Mobility

Launched in 2019, FAME II has so far subsidised sales of nearly 1.3 million two-wheelers, 150,613 three-wheelers, and 18,794 four-wheelers. Over Rs 6,163 crore has been disbursed under the FAME II scheme which was initially launched for three years but later extended to five, ending in 2024.

The E-Transport Promotion Scheme 2024:

Scheme Duration and Budget: The scheme is set to be implemented from April 2024 to July 2024, with an allocated budget of Rs 500 crore. This period is crucial for fostering a substantial shift towards electric mobility.

Financial Assistance for EV Purchases: A pivotal feature of the scheme is the provision of financial support for buyers of electric two-wheelers and three-wheelers, making EVs more accessible and affordable for the general populace.

Assistance Details: Eligible beneficiaries will receive Rs 10,000 per two-wheeler and Rs 25,000 for small three-wheelers. This assistance is expected to benefit approximately 3.3 lakh two-wheelers and 41,000 small three-wheelers. For larger three-wheelers, the scheme offers a substantial subsidy of Rs 50,000,

FAME-2 Program Conclusion: The scheme’s introduction coincides with the closure of the second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-2) program, which ends on March 31, 2024. The new scheme will likely continue the momentum generated by FAME-2 in promoting electric vehicles.

 Overview in Tabular Form:

Aspect Details

Scheme Name E-Transport Promotion Scheme 2024

Duration April 2024 – July 2024

Budget Rs 500 crore

Beneficiaries Buyers of electric two-wheelers and three-wheelers

Financial Assistance Rs 10,000 per two-wheeler; Rs 25,000 for small three-wheelers; Rs 50,000 for big three-wheelers

Anticipated Beneficiaries Approx. 3.3 lakh two-wheelers and 41,000 three-wheelers

Collaboration with IIT Roorkee MoU signed to promote innovation in automotive and EV sector

Project Funding for Collaboration Rs 24.6645 crore,

(You can now subscribe to our  WhatsApp channel)

"Exciting news! Thevinod is now on WhatsApp Channels ???? Subscribe today by clicking the link and stay updated with the latest insights!" Click here!

Emobility,electric vehiclesI,IT Roorkee,memorandum of understanding