The deadline for Faster Adoption and Manufacturing of Electric Vehicles in India, or FAME-II project, is coming to an end on March 31st, 2024 across the country. As a result, many potential buyers and sellers are worried about disruptions after expiry of this project in the market. Concerns about the impact on sales have also arisen due to the withdrawal of incentives by the Central Govt. However, amidst these circumstances, a ray of hope has been seen by an announcement from the Central Heavy Industries Ministry or the Ministry of Heavy Industries (MHI).
The Center has introduced a new project named Mobile Promotion Scheme 2024 or EMPS 2024. Under this project, 500 crore rupees have been allocated. Its duration is from April 1st to July 31st, 2024. That means, starting from the day after the completion of the FAME-II project, for four months, incentives will be provided for electric vehicles under this project. It has been stated that only electric two and three-wheelers will receive economic benefits.
The Center has initiated EMPS 2024
Under EMPS 2024, models of electric two-wheelers will receive a subsidy of up to 10,000 rupees and small electric three-wheelers (e-rickshaws and e-carts) will receive a subsidy of 25,000 rupees. Additionally, large battery-operated three-wheelers will receive a subsidy of 50,000 rupees. A statement released by the Heavy Industries Ministry has revealed that the commencement of this project is aimed at providing incentives to nearly 3.3 lakh two-wheelers and 31,000 electric three-wheelers. However, this offer will be available on all vehicles equipped with advanced batteries.
To encourage more people in the country to buy battery-operated vehicles, the government had introduced incentives under the FAME-II project. In February, This year, the government has announced to increase the subsidy amount from Rs.10,000 crore to Rs.11,500 crore for this project. A total of 7,048 crore rupees were allocated for the purpose of incentives for electric two-wheelers, three-wheelers, and four-wheelers.
