With a ₹500 crore investment, the Union Ministry of Heavy Industries on Wednesday introduced the Electric Mobility Promotion Scheme 2024, which would boost sales of EVs through July. This is just prior to the 31st March deadline for the ₹10,000 crore Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) II initiative.
Incentives for electric two-wheelers totaling ₹333.39 crore have been allocated under this new scheme. ₹33.97 crore has been set aside for e-rickshaws and e-carts. An additional ₹126.19 crore would be allocated towards promoting the sales of L5 electric three-wheelers, which have speeds above 25 kilometers per hour. But there wouldn’t be any incentives for four-wheelers. Four-wheeled vehicles are eligible for subsidies under FAME II.
EV sales promotion
First reported by CNBC TV18 on March 7, the government has set aside ₹500 crore to fund EV sales incentives through July 31, 2024. A subsidy of ₹10,000 for electric two-wheelers, ₹25,000 for e-rickshaws and e-carts, and ₹50,000 for heavy electric three-wheelers would be provided under the new scheme. Union Minister for Heavy Industries Mahendra Nath Pandey stated, “The ministry of heavy industries reiterates its commitment towards e-mobility through this newly launched ₹500 crore scheme.”
The government created the FAME India Phase II program, which will have a total financial assistance of ₹10,000 crore and run for five years, starting on April 1, 2019. Data from the National Automotive Board indicates that around 1.47 million vehicles have been sold under phase-II of the FAME plan to date. This number includes 1.3 million two-wheelers, 150,613 three-wheelers, and 18,794 four-wheelers. The third phase of the plan has not yet been finalized by the government.
