The Indian government has today unveiled a new Rs 500 crore programme to promote electric two-wheeler and three-wheeler sales. Dubbed the Electric Mobility Promotion Scheme (EMPS), the initiative will run for four months starting April 1.
This announcement comes as the previous Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) scheme nears its end on March 31, 2024.
The government rolled out the first phase of the FAME scheme in 2015, followed by the second phase in 2019. FAME I came with a budgetary outlay of Rs 895 crore, while FAME II was rolled out with a much bigger outlay of Rs 10,000 crore, for a period of three years ending 2022. The scheme was however extended to March 2024 following the COVID-19 outbreak.
The new programme allocates Rs 333.39 crore for two-wheelers, translating to a subsidy of Rs 5,000 per kilowatt-hour (kWh) with a maximum limit of Rs 10,000 per vehicle. This subsidy is expected to support the purchase of 333,387 two-wheeler EVs.
For electric three-wheelers, the government will provide Rs 33.97 crore in incentives. This translates to a subsidy of Rs 5,000 per kWh with a maximum cap of Rs 25,000 per vehicle, supporting an estimated 41,306 electric three-wheeler purchases.
The programme further includes a category for e-rickshaws and e-carts, offering the same Rs 5,000 per kWh subsidy. However, the maximum incentive for this category is set at a higher rate of Rs 25,000 per vehicle, A total of 13,590 units are to be supported under this category.
The scheme also includes a specific segment for L5 electric three-wheelers, with a larger subsidy allotment of Rs 126.19 crore. While the per-kWh subsidy remains at Rs 5,000, the maximum incentive per vehicle is significantly higher at Rs 50,000. This segment is expected to benefit 25,238 electric three-wheeler purchases.