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ELECTRIC MOBILITY PROMOTION SCHEME (EMPS)- 2024

Posted 15 Apr 2024

3 minread

Why in the news?

The Ministry of Heavy Industries (MHI) has introduced the Electric Mobility Promotion Scheme 2024 (EMPS 2024) to accelerate the adoption of Electric Vehicles in India.

About EMPS 2024

Funding and Tenure: It is a fund-limited scheme with an outlay of Rs. 500 crores for a period of 4 months, w.e.f. 1^st April 2024 till 31^st July 2024.
Objective: Faster adoption of electric two-wheeler (e-2W) and three-wheeler (e-3W) to provide further impetus to the green mobility and development of the electric vehicle (EV) manufacturing ecosystem in the country.
Target: It aims to support around 3.72 lakh EVs including e-2W (3.33 lakh) and e-3W (0.38 lakh).
Eligible EV categories: With greater emphasis on providing affordable and environment-friendly public transportation options, the scheme will apply mainly to those e-2W and e-3Ws registered for commercial purposes.
- In addition to commercial use, privately or corporate-owned registered e-2W will also be eligible.
- To encourage advanced technologies, the benefits of incentives will be extended to only those vehicles which are fitted with advanced batteries.
Components:
- Subsidies: Demand incentives for e-2W & e-3W.
  - Available for consumers in the form of an upfront reduced purchase price (Rs. 5,000 per kWH) of EVs, which will be reimbursed to OEM (Original Equipment Manufacturer) by Government of India.
- Administration of Scheme including IEC (Information, Education and Communication) activities and fee for Project Management Agency (PMA).

Government initiatives for promotion of EV manufacturing ecosystem:

PLI Schemes: Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry in India to boost domestic manufacturing of Advanced Automotive Technology products.
- PLI Scheme for manufacturing of Advanced chemistry cell (ACC) to bring down prices of battery in the country.
FAME India: Under FAME India Scheme Phase-II, Phased Manufacturing Programme (PMP) has been introduced for domestic manufacturing of electrical vehicles, its assemblies/ sub-assemblies and parts/sub-parts thereby increasing the domestic value addition.
Rationalization of Goods and Services Tax (GST):
- on electric vehicles from 12% to 5%;
- on chargers/charging stations for electric vehicles from 18% to 5%.
‘Technology Platform for Electric Mobility (TPEM)’ formed by Ministry of Science and Technology to play a key role in forming an electric mobility standardization roadmap for India.