Electric Two-Wheeler Subsidies Extended Till September 30 Under Revised EMPS Scheme
- The scheme's goal has been updated to 5,60,789 electric vehicles
- The revised target will support 5,00,080 electric two-wheelers
- Rs 769.65 crore allocated for e-two- and three-wheelers
The Indian government has announced an extension of the Electric Mobility Promotion Scheme (EMPS) 2024, which aims to promote green mobility and develop the electric vehicle (EV) manufacturing ecosystem. Originally set to conclude on July 31, the scheme will now run until September 30.
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The revised target will support 5,00,080 electric two-wheelers.
The EMPS 2024, which began on April 1, initially had a budget allocation of Rs 500 crore. This budget has now been increased to Rs 778 crore. The scheme's goal has also been updated to support the purchase of 5,60,789 electric vehicles (EVs), an increase from the original target of 3,72,215 EVs.
The primary focus is on electric two-wheelers, with a new target of 5,00,080 units, up from 3,33,387 units. Additionally, electric three-wheelers such as rickshaws and e-karts are included, with the bulk of the budget – Rs 769.65 crore – allocated to the e-two-wheelers and e-three-wheelers categories.
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The maximum subsidy for electric two-wheelers is limited to Rs 10,000.
To promote advanced technologies, incentives will be provided only for EVs equipped with advanced batteries. The scheme has a limited fund and restricts the number of EVs supported within each defined category, mentioned the statement. The subsidy allocated in EMPS 2024 is Rs 5,000 for every kWh of battery capacity in an electric two-wheeler. Therefore, an electric two-wheeler equipped with a 2 kWh battery is eligible for a subsidy of Rs 10,000. However, the maximum subsidy for electric two-wheelers is also limited to Rs 10,000.
The extension of the EMPS 2024 comes amidst discussions of introducing the FAME III scheme, which could further accelerate the promotion and adoption of electric vehicles in India. However, in the 2024 Budget, the electric vehicle (EV) sector in the Indian market did not receive any direct announcements regarding subsidies or other benefits to bolster the EV ecosystem.
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