EMPS 2024 Subsidy Extended
The government in its statement said that the new scheme aims to provide affordable and environment-friendly public transportation options for the masses. The scheme will be available on electric two-wheelers for private and commercial use, while the subsidy on electric three-wheelers will be available when registered for commercial purposes.
Also Read : How both hybrids and EVs stand to benefit from the Union Budget 2024
The EMPS 2024 subsidy offers an incentive of ₹5,000 for every kWh of battery capacity up to ₹10,000. The ministry also clarified that the incentives will be available only for EVs equipped with advanced batteries and will be restricted to the targeted numbers in each of the categories. The scheme aims to support 560,789 electric vehicles comprising 500,080 electric two-wheelers, and 60,709 electric three-wheelers. The latter includes 13,590 e-rickshaws and e-carts, and 47,119 electric three-wheelers in the L5 category.
No FAME III Scheme for now
The extension to the EMPS 2024 arrives as discussions have been rife around the introduction of the FAME III (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles). Speculations suggested that the government would announce FAME III in the Union Budget 2024. However, it appears the stakeholders could not agree to a consensus on how to proceed with the scheme.
There were no direct announcements either in this year’s budget related to electric vehicles or even the auto sector at large. That said, the government reduced the import duties on 25 crucial minerals, which are expected to boost local battery manufacturing which should reduce prices on electric vehicles in the long term.
First Published Date: 27 Jul 2024, 15:26 PM IST