New Delhi: The newly-unveiled Electric Mobility Promotion Scheme or EMPS would promote the nascent electric vehicle (EV) industry including acceleration in adoption and manufacturing in line with Atmanirbhar Bharat (self-reliant India), a senior official said.
“A new scheme has already been launched by the Ministry of Heavy Industries, called the Electric Mobility Promotion Scheme that will continue for four months,” Hanif Qureshi, Joint Secretary, Ministry of Heavy Industries told ETAuto.
On March 13, Prime Minister Narendra Modi government unveiled the Electric Mobility Promotion Scheme (EMPS) 2024, to encourage the purchase of electric two-wheelers (e2W) and three-wheelers (e3W) in the country.
“It (scheme) is to increase the faster adoption and manufacturing of electric vehicles, particularly two-wheelers and three-wheelers,” Qureshi said, adding that the ongoing schemes would boost the industry that could play an important role towards GDP contribution.
With an emphasis on providing affordable and environment-friendly public transportation options, the Department of Expenditure of the Ministry of Finance approved the scheme with an outlay of INR 500 crore for a four-month period between April 1, 2024 and July 31, 2024.
The scheme aims to offer impetus to green mobility including the development of the EV manufacturing ecosystem in the country. The scheme aims to support 3,72,215 EVs.
Last year, a parliamentary panel had suggested the government to release a comprehensive nationwide policy on EV by incorporating best practices worldwide and successful state models.
The government’s flagship Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles flagship scheme or FAME – II, according to the official, would come to an end on March 31, 2024.
Qureshi said that the government is facilitating industry growth through the existing programs and other fiscal and non-fiscal measures that the department undertakes.
The official, however, has denied having any plans to come out with a special incentives scheme for startups in India.
Under the Centre’s ambitious production-linked incentive (PLI) scheme for automobiles, 85 companies such as Tata Motors, Mahindra, Maruti Suzuki, Toyota, Hyundai and Ola have applied, in addition to three firms under the PLI-ACC (Advanced Chemistry Cell) scheme – Reliance New Energy Battery Storage Limited, Ola and Rajesh Exports.
Electric vehicles are envisaged to grow at a CAGR of 49% till 2030, and the domestic market is expected to touch 1-crore units in annual sales by 2030 and is likely to create 5-crore direct and indirect jobs, as per the Economic Survey 2022-23.
