Electric Mobility Promotion Scheme Offers Short-Term Support Ahead Of FAME-III: MHI

New Delhi, Jul 24 (KNN) The Ministry of Heavy Industries (MHI) has issued a statement regarding the Electric Mobility Promotion Scheme (EMPS), emphasising its limited funding and timeframe.

The EMPS, designed as an interim measure between the FAME-II and upcoming FAME-III schemes, will only process subsidy claims until its Rs 500-crore budget is depleted or the scheme concludes on July 31, 2024, whichever occurs first.

The EMPS aims to incentivise the purchase of up to 333,387 electric two-wheelers and 40,828 electric three-wheelers.

As of Tuesday, the government's EMPS dashboard reported that companies have submitted claims totalling Rs 54.42 crore for 41,557 vehicles.

This suggests substantial room for additional claims in the coming weeks, leading up to the anticipated introduction of FAME-III.

In its statement, the MHI clarified, "EMPS 2024 is fund limited, with restricted number of vehicles and a term-limited Scheme.”

The statement further highlighted, “The subsidies for demand incentive are eligible for e-2w and e-3w sold and registered until the funds are available or the number of vehicles supported reaches the maximum number defined category-wise or until 31 July 2024, whichever comes first."

The ministry specified that eligible electric vehicles must be manufactured and registered within the validity period of the EMPS-2024 certificate to qualify for incentives under the scheme.

While the EMPS provides short-term support for the electric vehicle industry, concerns persist regarding the sustainability of the EV ecosystem beyond the scheme's duration.

The FAME-II program concluded on March 31, with EMPS serving as a bridge until July 31. However, the next iteration, FAME-III, has yet to receive final cabinet approval.

As the electric mobility sector awaits details on long-term support measures, stakeholders are closely monitoring developments in government policy to ensure continued growth in this emerging industry.

(KNN Bureau)