Why in the news?
The Ministry of Heavy Industries (MHI) has introduced the Electric Mobility Promotion Scheme 2024 (EMPS 2024) to accelerate the adoption of Electric Vehicles in India.
More on the News
- Ministry has formulated EMPS-2024 after the review of Phase II of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) Scheme.
- FAME Phase II was launched in 2019 after the completion of Phase I (launched in 2015).
About EMPS 2024
- Funding and Tenure: It is a fund-limited scheme with an outlay of Rs. 500 crores for a period of 4 months, w.e.f. 1st April 2024 till 31st July 2024.
- Objective: Faster adoption of electric two-wheeler (e-2W) and three-wheeler (e-3W) to provide further impetus to the green mobility and development of the electric vehicle (EV) manufacturing ecosystem in the country.
- Target: It aims to support around 3.72 lakh EVs including e-2W (3.33 lakh) and e-3W (0.38 lakh).
- Eligible EV categories: With greater emphasis on providing affordable and environment-friendly public transportation options, the scheme will apply mainly to those e-2W and e-3Ws registered for commercial purposes.
- In addition to commercial use, privately or corporate-owned registered e-2W will also be eligible.
- To encourage advanced technologies, the benefits of incentives will be extended to only those vehicles which are fitted with advanced batteries.
- Components:
- Subsidies: Demand incentives for e-2W & e-3W.
- Available for consumers in the form of an upfront reduced purchase price (Rs. 5,000 per kWH) of EVs, which will be reimbursed to OEM (Original Equipment Manufacturer) by Government of India.
- Administration of Scheme including IEC (Information, Education and Communication) activities and fee for Project Management Agency (PMA).
- Subsidies: Demand incentives for e-2W & e-3W.
Government initiatives for promotion of EV manufacturing ecosystem:
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