Gov Extends E-Mobility Scheme With A Budget Of Rs 778cr

In 2019, the Indian government approved the ‘Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II)’ to promote electric mobility. Recently, the government extended the duration of the Electric Mobility Promotion Scheme (EMPS) 2024 by two months, now running until September 30, 2024. Additionally, the scheme’s outlay has been increased to Rs. 778 crores.

Initially, a total outlay of Rs. 10,000 crores was allocated for the FAME policy, which commenced on April 1, 2019. The first phase had a budget of Rs. 895 crores, while the second phase focused on the electrification of public and shared transportation. The second phase aims to support:

• 7,090 e-buses
• 500,000 e-3 wheelers
• 55,000 e-4-wheeler passenger cars
• 1 million e-2 wheelers

The Electric Mobility Promotion Scheme 2024 (EMPS 2024), was launched by the Ministry of Heavy Industries through a gazette notification dated March 13, 2024. It was designed to enhance the adoption of electric vehicles (EVs) in India. Originally scheduled from April 1, 2024, to July 31, 2024, the scheme has been extended to September 30, 2024, with its total budget increased to Rs. 778 crores.

This scheme supports the Government of India’s green initiatives and aims to foster the growth of the EV manufacturing ecosystem. It applies to, electric two-wheelers (e-2W) and electric three-wheelers (e-3W), including e-rickshaws, e-carts, and L5 category vehicles The scheme particularly targets commercial electric two-wheelers (e-2Ws) and electric three-wheeler (e-3Ws) but also includes privately or corporately owned e-2Ws.

Revised Targets

The revised scheme targets support for 560,789 electric vehicles, including 500,080 electric two-wheelers (e-2Ws) and 60,709 electric three-wheelers (e-3Ws), of which 13,590 are rickshaws and e-carts, and 47,119 are L5 category vehicles. These incentives are available only for EVs equipped with advanced batteries. The scheme’s funding is limited and targets specific numbers for each category.

Aatma Nirbhar Bharat

The scheme supports the Prime Minister’s vision of Aatmanirbhar Bharat by fostering a competitive and resilient domestic EV manufacturing industry. The Phased Manufacturing Programme (PMP) encourages domestic production and strengthens the EV supply chain, creating significant employment opportunities.

Two-Wheeler EVs Under FAME

According to a recent parliamentary report by Minister of State for Steel and Heavy Industries, Bhupathiraju Srinivasa Varma, the government spent Rs. 4,375.59 crores on electric two-wheelers under the FAME scheme from April 1, 2019, to March 31, 2024. The second highest expenditure was Rs. 1,322 crores on electric buses. Spending on electric three-wheelers and four-wheelers totaled Rs. 399.12 crores, bringing the total expenditure on electric vehicles to Rs. 6,942.32 crores.

To further promote clean mobility, the Ministry of Heavy Industries has increased the outlay under FAME India Phase II from Rs. 10,000 crores to Rs. 11,500 crores.

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