In a significant boost to India’s electric vehicle (EV) industry, the Government of India has announced the extension and expansion of the Electric Mobility Promotion Scheme 2024 (EMPS 2024). Initially set to run from April 1st to July 31st, 2024, the scheme will now continue until September 30th, 2024, with a substantial increase in funding from Rs. 500 crore to Rs. 778 crore. This decision, revealed through a gazette notification by the Ministry of Heavy Industries, aims to further accelerate the adoption of electric vehicles across the country.
Unveiling the EMPS 2024
The EMPS 2024, introduced on March 13, 2024, was designed to support the government’s ambitious green initiatives and to foster the development of a robust EV manufacturing ecosystem in India. With the scheme’s extension, the government is doubling down on its commitment to reducing carbon emissions and promoting sustainable transportation.
Focus on Two and Three-Wheelers
The extended scheme focuses on two primary categories of electric vehicles: two-wheelers (e-2Ws) and three-wheelers (e-3Ws), including registered e-rickshaws, e-carts, and L5 category vehicles. The emphasis is on providing affordable, environmentally friendly public transportation options, primarily for commercial use. However, the scheme also includes provisions for privately or corporately owned registered e-2Ws.
Ambitious New Targets
The revised EMPS 2024 sets an ambitious goal of supporting 560,789 electric vehicles. This includes 500,080 electric two-wheelers and 60,709 electric three-wheelers, further broken down into 13,590 rickshaws and e-carts, and 47,119 L5 category e-3Ws. Notably, the scheme stipulates that incentives will only be available for EVs equipped with advanced batteries, underscoring the government’s focus on promoting cutting-edge technology within the industry.
Aatma Nirbhar Bharat: Strengthening Domestic Manufacturing
A cornerstone of the EMPS 2024 is its alignment with the Prime Minister’s vision of Aatma Nirbhar Bharat (Self-Reliant India). The scheme promotes an efficient, competitive, and resilient EV manufacturing industry in the country through the adoption of the Phased Manufacturing Programme (PMP). This initiative encourages domestic manufacturing and aims to fortify the EV supply chain, thereby creating substantial employment opportunities across the value chain.
Boosting Employment and Economic Growth
The extension and enhancement of EMPS 2024 are expected to drive significant growth in India’s EV sector, creating numerous job opportunities and fostering economic development. By incentivizing the production and adoption of advanced electric vehicles, the government is laying the groundwork for a sustainable future while simultaneously advancing its economic and environmental goals.
The extension of the EMPS 2024, coupled with the increased funding and revised targets, marks a pivotal step in India’s journey towards a greener, more sustainable transportation system. As the country strives to reduce its carbon footprint and promote energy independence, the expanded scheme is set to play a crucial role in shaping the future of India’s electric mobility landscape.
The component wise enhanced outlay of the scheme is as under:
| Components | Description | Total Fund requirement for 6 months (INR in crore) |
| Subsidies/Demand Incentive | incentive for electric 2W (e-2W) and electric 3 W including registered e-rickshaws & e-carts and L5 (e-3W) | 769.65 |
| Administration of scheme | including IEC (Information, Education & Communication) activities and fee for Project Management Agency | 8.35 |
| Total | 778.00 |
