MHI launches Electric Mobility Promotion Scheme 2024 with an outlay of INR 500 crore

As FAME 2 scheme comes to an end on 31 March 2024, the Ministry of Heavy Industries, with the approval of the Department of Expenditure, Ministry of Finance, has announced the Electric Mobility Promotion Scheme 2024 (EMPS 2024) with a total allocation of INR 500 crore. This scheme will be operational from April 1st to July 31st, 2024, aimed at promoting the adoption of electric vehicles (EVs) in India, specifically electric two-wheelers (e-2W) and three-wheelers (e-3W).

EMPS 2024 aims to support the adoption of 3,72,215 EVs, comprising 3,33,387 e-2W and 38,828 e-3W (including 13,590 e-rickshaws & e-carts and 25,238 e-3W in the L5 category), with incentives extended to vehicles equipped with advanced batteries.

• Eligible e-2Ws and e-3Ws will receive a demand incentive of INR 5,000 per kWh, capped at 15% of the vehicle’s ex-factory price.
• INR 333.39 cr has been allocated towards demand incentives for 3,33,387 e-2Ws, with a max ex-factory price of INR 1,50,000. The incentive will be capped at INR 10,000 per EV.
• INR 33.97 cr has been allocated towards demand incentives for 13,590 low-speed e-rickshaws and e-carts, with a max ex-factory price of INR 2,50,000. The incentive will be capped at INR 25,000 per EV.
• INR 126.19 cr has been allocated towards 25,238 L5 e-3Ws with the max ex-factory price of INR 5,00,000. The incentive is to be capped at INR 50,000 per EV.
• INR 6.45 cr allocated towards administrative expenses of the scheme

An inter-ministerial empowered committee viz. PISC, headed by the Secretary (Heavy Industries), is constituted to monitor, sanction, and implement the scheme. The incentives under this scheme will be independent of and in addition to incentives given under the production-linked incentive (PLI) scheme for the automobile and auto components industry (PLI-AUTO) and the PLI scheme for advanced chemistry cell (PLI-ACC)

Link to the Guidelines document – This document outlines the eligibility criteria as well as conditions to avail the incentives.

The scheme aligns with the government’s vision of Aatma-Nirbhar Bharat by promoting domestic manufacturing through the Phased Manufacturing Programme (PMP), which aims to strengthen the EV supply chain and create employment opportunities.

Also read: MHI seeks global bids for 10 GWh ACC manufacturing under PLI scheme