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.
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.
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
Hormazd Sorabjee
Anurag Chaturvedi
