Government Launches Electric Mobility Promotion Scheme 2024 to Accelerate Green Revolution

The Indian government has taken an enormous step towards boosting electric mobility by launching the Electric Mobility Promotion Scheme (EMPS) 2024. This plan, launched by the Ministry of Heavy Industries, intends to expedite the adoption of electric vehicles (EVs) nationwide.

This upgrade comes as the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) promotion scheme is expected to expire on March 31, 2024. However, it has been relaunched as the Electric Mobility Promotion Scheme 2024 and extended until July 31, 2024.

This initiative, approved by the Department of Expenditure, intends to accelerate the use of EVs across the country, representing a significant step toward sustainable mobility. The Ministry of Finance has approved the EMPS 2024, which has a total outlay of Rs. 500 crore and runs for four months beginning April 1, 2024. The major goal is to accelerate the adoption of electric two-wheelers (e-2W) and three-wheelers (e-3W) to promote green mobility and support the expansion of the EV manufacturing sector.

With a stronger emphasis on offering economical and environmentally friendly public transportation options for the masses, the scheme will primarily apply to e-2W and e-3W vehicles licensed for commercial use. Furthermore, in addition to commercial use, the scheme will cover individually or corporately owned registered e-2Ws. Let’s delve into the details of this exciting initiative.

Key Highlights of EMPS 2024

Duration and Budget

The scheme will be in effect from April 1, 2024, to July 31, 2024.
It has a total outlay of ₹500 crore.

Targeted Vehicles

EMPS 2024 primarily focuses on promoting the use of electric two-wheelers (e-2W) and three-wheelers (e-3W).

Eligible categories include:
•    Two-Wheelers (e-2W): Both commercially registered and privately owned.
•    Three-Wheelers (e-3W): This includes registered e-rickshaws, e-carts, and L5 category e-3Ws.

Incentives and Subsidies

The scheme provides demand incentives for e-2Ws and e-3Ws.
To encourage advanced technologies, incentives will be extended only to vehicles equipped with advanced batteries.

Aatma Nirbhar Bharat (Self-Reliant India)

EMPS 2024 aligns with the vision of an efficient, competitive, and resilient EV manufacturing industry in India.

The Phased Manufacturing Programme (PMP) encourages domestic manufacturing and strengthens the EV supply chain. This initiative will create significant employment opportunities across the value chain.

The targeted deployment of electric vehicles (EVs) encompasses a diverse range of categories aimed at revolutionizing transportation infrastructure. With a total deployment goal of 3,27,215 units, the initiative seeks to embrace sustainable mobility solutions. 

Among these, electric two-wheelers (e-2W) dominate with a planned deployment of 3,33,387 units, reflecting a significant emphasis on personal electric transportation. Complementing this, electric three-wheelers (e-3W) have been scheduled for deployment at 38,828 units, offering efficient and eco-friendly alternatives for short-distance commuting.

Furthermore, the deployment includes E-Rickshaws and E-Carts, catering to specific niche markets with 13,590 units each, contributing to last-mile connectivity and intra-city logistics solutions. Additionally, the L5 category, with a deployment target of 25,238 units, signifies a commitment to introducing advanced electric vehicles, likely comprising larger vehicles such as buses or utility trucks, fostering sustainability across various modes of transportation. 

This comprehensive deployment strategy underscores a concerted effort towards achieving widespread adoption of EVs, fostering a greener and more sustainable future for urban mobility.

Also Read: Mission Shakti Scheme: Empowering Women through E-Rickshaws

EMPS 2024 Benefits in India

Green Mobility: By promoting EV adoption, the scheme contributes to a cleaner and more sustainable transportation system.

Manufacturing Ecosystem: It supports the development of an indigenous EV manufacturing ecosystem.

Affordable Public Transportation: The focus on commercial e-2Ws and e-3Ws aims to provide affordable and eco-friendly public transportation options.

Technological Advancements: Incentives for advanced battery-equipped vehicles encourage technological progress. Incentives would be extended to vehicles equipped with sophisticated battery technology to boost technological growth in the EV industry.

Implementation and Future Perspectives

The Ministry of Heavy Industries will release detailed notifications and guidelines for implementing EMPS 2024. These recommendations will provide clarity on operational aspects and incentive mechanisms, hence promoting the growth and sustainability of India's EV ecosystem.

CMV360 Says

The Electric Mobility Promotion Scheme 2024 is a crucial step toward realizing India’s vision of a greener, self-reliant future. As more EVs hit the roads, we move closer to a cleaner and more sustainable India.