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Business News/ Industry / Energy/  New 500 crore e-mobility scheme kicks in from today. All you need to know
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New ₹500 crore e-mobility scheme kicks in from today. All you need to know

A new 500 crore electric mobility scheme will kick off from today replacing the existing Faster adoption and manufacturing of electric vehicles II scheme which expired on March 31.

The budget also said electric vehicles charging will get a boost from the mega rooftop solarization programme. (Image: Pixabay)Premium
The budget also said electric vehicles charging will get a boost from the mega rooftop solarization programme. (Image: Pixabay)

Government's Faster adoption and manufacturing of electric vehicles II (FAME II) scheme has come to an end and a new Electric Mobility Promotion Scheme 2024 (EMPS 2024) has been rolled out for the next four months i.e. from April to July 2024. The new scheme, with a total outlay of 500 crore, aims to promote the purchase of electric two-wheelers (e2W) and three-wheelers (e3W) across the country.

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The EMPS scheme aims to support 3,72,215 electric vehicles across the country, including e2W and e3W vehicles. However, a government release had stated that the benefits of this new scheme will be provided only to vehicles equipped with advanced batteries.

Under the new scheme, a subsidy of up to 10,000 will be provided for two-wheelers with an aim to support around 3.33 lakh such EVs. Meanwhile, a subsidy of up to 25,000 will be provided for the purchase of small three-wheelers like e-rickshaws and e-carts, with a target of supporting around 41,000 such vehicles, and a subsidy of up to 50,000 will be provided for large three-wheelers.

Minister for Heavy industries Mahendra Nath Pandey while speaking about the scheme had said, "The reduction in subsidy is in response to the heightened demand. Our aim is to strengthen the industry while preparing it for a future without subsidies. The 500 crore allocation will support approximately 400,000 e2Ws and e3Ws over four months."

What is Fame II? 

The EMPS 2024 scheme has replaced the government's FAME II initiative, which was launched in 2019 with an outlay of around 10,000 crore, while another 1,500 crore was later allocated. The scheme was initially unveiled for a period of three years and aimed to support around 7,000 e-buses, 5 lakh three-wheelers, 10 lakh two-wheelers and 55,000 e-passenger cars.

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During the interim budget presented this year, Finance Minister Nirmala Sitharaman allocated 2,671 crore for the FAME III scheme, meaning a 44% reduction from the earlier allocated amount. However, a report by ANI quoting industry experts predicts that the government will hike this amount in the full budget after the elections.

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Published: 01 Apr 2024, 11:35 AM IST
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