MHI announces new ₹500 crore scheme to boost electric two, three-wheeler sales

The Ministry of Heavy Industries (MHI) has rolled out a new scheme in a bid to push the adoption of electric vehicles in the coming months. The new E-Mobility Promotion Scheme 2024 (EMPS 2024) brings an outlay of ₹500 crore for four months starting from April 1 till July 31, 2024, following the end of the Faster Adoption & Manufacturing of Electric Vehicles in India (FAME II) subsidy programme that ends on March 31. The new incentive will be available for only electric two-wheelers and three-wheelers, the company said.

Under EMPS 2024, the government will provide an incentive of ₹10,000 per electric two-wheeler, going to ₹25,000 per small electric three-wheeler (e-rickshaw & e-carts), and up to ₹50,000 for a large electric three-wheeler.

In a statement, MHI said it aims to support about 3.3 lakh two-wheelers with the latest e-mobility scheme as well as about 31,000 electric three-wheelers. The ministry also clarified that the benefits of incentives will be extended to only those vehicles which are fitted with advanced batteries.

The FAME II subsidy scheme has been instrumental in making electric vehicles more accessible to customers. The government previously raised the allocation under FAME II to ₹11,500 crore, up from ₹10,000 crore in February this year.

As per the revised FAME II outlay, the electric two-wheelers, three-wheelers and four-wheelers are eligible to avail subsidies to the tune of ₹7,048 crore, while about ₹4,048 crore has been allocated towards grants for capital assets, while ₹400 crore has been earmarked in the ‘others’ category. Subsidies under the FAME II scheme will be eligible for electric vehicles sold till March 31, 2024, or till the time funds are available, the centre clarified.