Government Unveils Major Schemes to Boost EV Market
In a significant push towards sustainable transportation, the Ministry of Heavy Industries has launched several initiatives aimed at promoting the adoption of electric vehicles (EVs) across the country.
Electric Mobility Promotion Scheme (EMPS)-2024
With an outlay of ₹500 Crore, the EMPS-2024 scheme runs from April 1, 2024, to July 31, 2024. This program specifically targets buyers of electric two-wheelers (e-2W) and three-wheelers (e-3W), offering substantial incentives to reduce the upfront purchase costs and encourage wider usage.
Production Linked Incentive Schemes
The government has introduced two key Production Linked Incentive (PLI) schemes to stimulate the EV market further:
- PLI for Automobile and Auto Component Industry (PLI-AAT) – With a robust budget of ₹25,938 Crore, this scheme supports various categories of electric vehicles, including e-2W, e-3W, electric four-wheelers (e-4W), electric buses (e-buses), and electric trucks (e-trucks).
- PLI for Advanced Chemistry Cell (PLI-ACC) Battery Storage – Allocated ₹18,100 Crore, this initiative aims to bolster the manufacturing of advanced battery technologies in India, essential for the growth of the EV ecosystem.
Promoting Electric Passenger Cars
In an effort to attract global investments, the government has launched a scheme to promote the manufacturing of electric passenger cars in India. This initiative aims to position India as a leading hub for EV manufacturing, drawing international EV manufacturers to set up operations within the country.
Additional Government Initiatives
The Government of India has also implemented several supportive measures to increase EV usage:
- Reduced GST: The Goods and Services Tax (GST) on electric vehicles and their chargers/charging stations has been slashed to 5%.
- Green License Plates: The Ministry of Road Transport & Highways (MoRTH) has introduced green license plates for battery-operated vehicles, exempting them from permit requirements.
- Road Tax Waiver: MoRTH has advised states to waive road tax on EVs, significantly lowering the initial cost for consumers.
Since 2015, the central government has been providing subsidies under the Faster Adoption and Manufacturing of Electric & Hybrid Vehicles (FAME) scheme. The ongoing EMPS-2024 continues this support, further reducing purchase prices for e-2Ws and e-3Ws through direct incentives.
This comprehensive information was shared by Minister of State for Heavy Industries and Steel, Bhupathi Raju Srinivasa Varma, in a written reply to the Lok Sabha today, underscoring the government’s commitment to transforming India’s transportation landscape through sustainable and eco-friendly solutions.
