Electric Mobility Promotion Scheme 2024: New initiative to boost two, three-wheeler sales; ₹500 crore set aside

The government on March 13 announced a new scheme to promote the sale of electric two- and three-wheelers. The four-month Electric Mobility Promotion Scheme (EMPS) 2024 is valid until July 2024, PTI reported.

Announcing the launch of the new electric mobility scheme, Heavy Industries Minister Mahendra Nath Pandey said the Narendra Modi-led government at the Centre is committed to promoting e-mobility in the country. 

The Union government has allocated ₹500 crore for the EMPS 2024. The minister noted that the scheme is valid for four months from April 1 onwards.

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The special scheme aims to increase the sale of electric two-wheelers, three-wheelers and e-rickshaws.

“The government's aim is to provide support for about 3.3 lakh two-wheelers. Under the scheme, financial support of ₹10,000 per two-wheeler will be provided,” the minister added.

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Pandey has said the government plans to cover more than 31,000 small three-wheelers (e-rickshaws and e-carts) under the scheme and will provide financial support of ₹25,000 for purchasing them.

“A financial support of ₹50,000 will be provided for the purchase of a large three-wheeler,” he said.

FAME-II Scheme

On February 9, the government had raised the allocation under the second iteration of the Faster Adoption & Manufacturing of Electric Vehicles in India (FAME-II) scheme to ₹11,500 crore, up from ₹10,000 crore.

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As per the revised FAME-II outlay, electric two-wheelers, electric three-wheelers, and electric four-wheelers are eligible to avail of subsidies to the tune of ₹7,048 crore. Besides, ₹4,048 crore has been allocated towards grants for creating capital assets, whereas ₹400 crore has been earmarked for the 'others' category.

According to a Ministry of Heavy Industries statement, these subsidies for demand incentives would be eligible for electric two-, three-, and four-wheelers sold till March 31, 2024, or till funds were available, whichever was earlier.