A Electric Mobility Promotion Scheme 2024 is announced by the Ministry of Heavy Industries. The Rs. 500 crore scheme is scheduled to be executed between April 1st and July 31st, 2024.
to be used with electric three-wheelers (e-3W) and two-wheelers (e-2W).
To encourage the nation’s production of electric vehicles and give green mobility even more momentum
To further speed up the adoption of EVs in the nation, the Ministry of Heavy Industries, Government of India, is introducing the Electric Mobility Promotion Scheme 2024 (EMPS 2024) with approval from the Department of Expenditure, Ministry of Finance. This is a fund-limited scheme that will spend a total of Rs. 500 crore over the course of four months, from April 1, 2024, to July 31, 2024, to encourage the faster adoption of electric two-wheelers (e-2W) and three-wheelers (e-3W). The goal is to further boost the nation’s EV manufacturing eco-system and promote green mobility.
Background of Electric Mobility Promotion Scheme
With an outlay of Rs. 895 crore, the then-Department of Heavy Industry announced the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-I) project to promote electric and hybrid vehicles from April 1, 2015, to March 31, 2019.
Phase II of the project was then developed by DHI with an initial budget of Rs. 10,000 crore, which was then increased to Rs. 11,500 crore for the period of April 1, 2019, to March 31, 2024.
In addition, the Ministry of Heavy Industries (MHI) developed the Electric Mobility Promotion Scheme-2024 based on the phase II review and the scheme specifications listed in the following paragraphs.
Categories of eligible EVs for Electric Mobility Promotion Scheme
a) Electric two-wheelers (e-2W)
b) Electric three-wheelers, such as L5 (e-3W) and registered e-rickshaws and e-carts
The program will primarily apply to e-2W and e-3W vehicles licensed for commercial use, with a focus on offering accessible and environmentally friendly public transit options for the general public. Furthermore, registered e-2W that is individually or corporately owned will be eligible under the plan in addition to commercial use.
Components of Electric Mobility Promotion Scheme 2024
| Components | Description | Total Fund requirement (INR in crore) |
| Subsidies/Demand Incentive | incentive for registered e-rickshaws, e-carts, and L5 (e-3W) and electric 2W (e-2W) and 3 W. | 493.55 |
| Administration of scheme | comprising project management agency fees and IEC (Information, Education, and Communication) activities | 6.45 |
| Total | 500 |
Project Implementation and Sanctioning Committee (PISC)
- The Electric Mobility Promotion Scheme-2024 is being overseen, approved, and implemented by the PISC, an interministerial empowered committee led by the Secretary of Heavy Industries. Its primary goal is to remove any roadblocks or challenges that may develop during the implementation phase. Annexure I contains the committee’s membership list.
- The PISC will be authorized to:
- Establish the plan parameters within the overall budget of Rs. 500 crore to ensure a smooth implementation of the project and to eliminate any potential roadblocks or challenges.
- adjusting the inter-se allocation between e-2W and e-3W.
Eligibility for Electric Mobility Promotion Scheme 2024
- Only automobiles registered in accordance with the Central Motor Vehicle Rules (CMVR) will qualify for incentives. Only vehicles equipped with advanced batteries (defined by technology in Annexure II) and meeting Annexure III’s performance requirements will be qualified for the program.
- The demand incentive or grant for EVs would be based on the battery capacity (i.e., energy content measured in kWh) utilized in such vehicles, since the cost of batteries is one of the primary variables determining the difference in acquisition price of EVs and internal combustion engine (ICE) vehicles. It is suggested that government incentives only be available to automobiles whose ex-factory price is less than a specific threshold value, as shown in Annexure-IV, in order to prevent extremely high-end vehicles from receiving them. Ex-factory cost shall mean ―price of the vehicle at the factory gate before applicable taxes.
- Annexure-IV provides additional information on the target number of vehicles to be supported per vehicle segment, incentive per kWh, maximum incentive per vehicle, maximum ex-factory price to receive incentive, total fund assistance from MHI, and other parameters.
Goal totals
3,72,215 EVs, including e-2W (3,33,387) and e-3W (38,828 including 13,590 rickshaws & e-carts and 25,238 e-3W in L5 category) are the targets of the scheme. The advantages of incentives will only apply to vehicles equipped with sophisticated batteries in order to promote advanced technology.
Aatma Nirbhar Bharat
- The Plan advances the nation’s EV manufacturing sector, making Aatma-Nirbhar Bharat, the prime minister’s dream, more viable, competitive, and robust. In order to achieve this, the Phased production Programme (PMP), which strengthens the off-EV supply chain and promotes domestic production, has been implemented. Along the value chain, this will also result in a large increase in employment prospects.
- MHI is issuing the EMPS 2024 announcement and recommendations separately.