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Government extends EV subsidy scheme till September 30, increases outlay

Government extends EV subsidy scheme till September 30, increases outlay
Business2 min read
  • The central government has extended the 'Electric Mobility Promotion Scheme 2024 until September 30.
  • A statement by the ministry on Friday added that the total outlay of the scheme has been enhanced to ₹778 crore.
  • It was originally set to run from April 1 to July 31, 2024, with a total outlay of ₹500 crores.
In a boost to electric vehicle (EV) sellers and those looking to purchase EVs, the central government on Friday extended the Electric Mobility Promotion Scheme 2024 (EMPS 2024).

The EMPS 2024, which was launched by the Ministry of Heavy Industries on March 13, 2024, through a gazette notification was originally set to run from April 1st to July 31st, 2024.

The scheme has now received a two-month extension and will continue till September 30, 2024. In addition to this extension, the government has also increased the outlay for this scheme from the initial ₹500 crore to ₹778 crore.

What is EMPS 2024?

The EMPS scheme replaced the earlier Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) scheme. The EMPS scheme was a stop-gap measure after the end of the FAME-II scheme and was expected to be replaced by a new FAME-III scheme in the Budget 2024-25.

However, as there was no consensus on a new scheme among the stakeholders, the government has decided to temporarily extend EMPS 2024 while a new FAME scheme is announced.

Under the EMPS 2024 scheme, customers can avail a subsidy of up to ₹10,000 for two-wheeler EVs, up to ₹25,000 for a small three-wheeler EV, and up to ₹50,000 for large three-wheeler EVs.

The ministry added that the scheme now targets supporting 560,789 electric vehicles, comprising 500,080 electric two-wheelers and 60,709 electric three-wheelers.

The subsidy under the EMPS 2024 scheme will only be available for EVs equipped with advanced batteries. Additionally, to promote domestic production, the government has also put in place a Phased Manufacturing Programme (PMP).

With inputs from agencies.

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