Ministry of Heavy Industries announces Electric Mobility Promotion Scheme 2024

By OEM Update Editorial March 14, 2024 12:59 pm

With a budget of Rs. 500 crore, the Electric Mobility Promotion Scheme will run from April 1st to July 31st, 2024, focusing on electric two-wheelers (e-2W) and three-wheelers (e-3W). Designed to boost green mobility, it aims to promote domestic electric vehicle manufacturing.

The Ministry of Heavy Industries, Government of India, has unveiled the Electric Mobility Promotion Scheme 2024 (EMPS 2024) with a total budget of Rs. 500 crore. This scheme, set to run from April 1st to July 31st, 2024, aims to expedite the adoption of electric vehicles (EVs) across the country, particularly focusing on electric two-wheelers (e-2W) and three-wheelers (e-3W). EMPS 2024 targets to support 3,72,215 EVs, including 3,33,387 e-2Ws and 38,828 e-3Ws, which encompasses registered e-rickshaws, e-carts, and those falling under the L5 category. The scheme emphasizes providing affordable and environmentally friendly public transportation options, especially for commercial purposes, while also extending benefits to privately or corporately owned e-2Ws.

EMPS 2024 comprises two primary components: Subsidies/Demand Incentive and Administration of Scheme. The former, with an allocation of INR 493.55 crore, provides incentives for electric 2Ws and 3Ws, including registered e-rickshaws, e-carts, and those in the L5 category. The latter, requiring INR 6.45 crore, covers Information, Education & Communication (IEC) activities and fees for Project Management Agency for efficient scheme administration. Notably, incentives will be extended only to vehicles equipped with advanced battery technologies, incentivizing the adoption of cutting-edge solutions.

Aligned with the vision of Aatma-Nirbhar Bharat, EMPS 2024 aims to promote an efficient, competitive, and resilient EV manufacturing industry in the country. The adoption of Phased Manufacturing Programme (PMP) encourages domestic manufacturing and strengthens the EV supply chain, fostering significant employment opportunities across the value chain. The Ministry of Heavy Industries will issue the notification and guidelines for EMPS 2024 separately, signaling a concerted effort to drive the transition towards sustainable and indigenous electric mobility solutions in India.