EMP subsidy to extend till FAME 3 introduction

The temporary Electric Mobility Promotion Scheme (EMPS) will be extended until FAME 3 is introduced, ensuring continued subsidies for EVs.

Published On Sep 09, 2024 01:41:00 PM

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EV subsidies to continue, says Ministry of Heavy Industries

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Amid concerns about the future of electric vehicle incentives, Union Minister for Heavy Industries HD Kumaraswamy has announced that the government will continue providing subsidies, and that the temporary Electric Mobility Promotion Scheme (EMPS) 2024 will be extended once the current scheme expires at the end of the month.

Kumaraswamy commented on the issue on the sidelines of the Automotive Component Manufacturers Association of India’s annual session in Delhi, stating, "There will be a gap between the current EMPS scheme and the implementation of the FAME 3 program because the Ministry is looking at the challenges faced by the FAME 2 scheme, which the government is attempting to mitigate with FAME 3. In a short period, you will receive all of the information."

He had previously stated that the FAME 3 scheme would be rolled out in the next 1 to 2 months.

"Within a short period, we will announce it. Not too long, not too long," Kumaraswamy said, referring to the time gap before the implementation of the much-awaited FAME 3 scheme.

The EMPS scheme, initially valid for four months and then extended for two more months, was launched with a total outlay of Rs 500 crore after the FAME 2 scheme expired on March 31. This was done to ensure the continuation of incentives for electric two- and three-wheelers.

Also See: Electric scooters to get costlier with onset of new subsidy from April 1

The FAME 2 scheme was rolled out in 2019 with an initial outlay of Rs 10,000 crore for three years, ending in 2022. It was later extended to March 2024 with an additional outlay of Rs 1,500 crore. The initial target of the scheme was to support 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 passenger cars, and 7,000 electric buses.

Several new-age OEMs, particularly two-wheeler ones, and industry bodies have been pushing the government to continue subsidies. The demand subsidy given under the scheme has been instrumental in driving the early-stage adoption of electric vehicles in the country.

WITH INPUTS FROM AMIT VIJAY