The Ministry of Heavy Industries, Government of India, has announced the extension of the Electric Mobility Promotion Scheme 2024 (EMPS 2024) until September 30, 2024, through gazette notification 1334 (E). Originally set to run from April 1, 2024, to July 31, 2024, the scheme’s duration and budget have been expanded to accelerate the adoption of electric vehicles (EVs) nationwide. The total outlay has been increased from Rs. 500 crore to Rs. 778 crore.
Boosting Green Initiatives and EV Manufacturing Ecosystem
The primary goal of EMPS 2024 is to advance India’s green initiatives and foster the growth of the EV manufacturing ecosystem. The scheme is part of a broader effort to make transportation more affordable and environmentally friendly, focusing on electric two-wheelers (e-2W) and three-wheelers (e-3W), including registered e-rickshaws, e-carts, and L5 category vehicles.
Eligible EV Categories
The scheme targets:
- Two-wheelers (electric) (e-2W)
- Three-wheelers (electric), including registered e-rickshaws & e-carts and L5 (e-3W)
The focus is on vehicles registered for commercial purposes. However, privately or corporately owned registered e-2Ws are also eligible.
Enhanced Outlay and Target Numbers
The revised component-wise outlay of the scheme is as follows:
| Components | Description | Total Fund Requirement for 6 Months (INR in Crore) |
|---|---|---|
| Subsidies/Demand Incentive | Incentive for electric 2W (e-2W) and electric 3W, including registered e-rickshaws & e-carts and L5 (e-3W) | 769.65 |
| Administration of Scheme | Including IEC activities and fees for the Project Management Agency | 8.35 |
| Total | 778.00 |
The scheme now aims to support 560,789 EVs, including 500,080 electric two-wheelers (e-2Ws) and 60,709 electric three-wheelers (e-3Ws). This includes 13,590 rickshaws and e-carts and 47,119 e-3Ws in the L5 category. To promote advanced technologies, incentives are available only for EVs equipped with advanced batteries. The scheme is fund-limited and EVs are restricted to targeted numbers for each category.
Promoting Aatma Nirbhar Bharat
EMPS 2024 aligns with the Prime Minister’s vision of Aatmanirbhar Bharat by promoting an efficient, competitive, and resilient EV manufacturing industry. The scheme incorporates the Phased Manufacturing Programme (PMP), which encourages domestic manufacturing and strengthens the EV supply chain. This initiative is expected to create significant employment opportunities across the value chain.
