Electric Two-Wheeler Makers Raise Concerns Over Revised EMPS 2024 Subsidies

ENA Sectors 2024-03-22 16:42:42 New Delhi, Mar 22 (KNN) In a recent development, electric two-wheeler manufacturers have voiced significant apprehensions regarding the revised Electric Mobility Promotion Scheme (EMPS) 2024. The Ministry of Heavy Industries (MHI) unveiled operational guidelines for EMPS 2024, replacing the existing FAME-II scheme, prompting concerns within the industry. Under the new scheme, which boasts an outlay of 500 crore for the initial four months, subsidies for electric two-wheelers have been substantially reduced. The subsidy per kilowatt-hour has been halved to Rs 5,000, with a capped subsidy of Rs 10,000 per vehicle, down from over Rs 22,500 previously. This adjustment has raised alarm bells among major players in the electric vehicle sector, including Mahindra & Mahindra, Bajaj Auto, TVS Motor Company, and others. A key concern highlighted by OEMs is the exclusion of vehicles retailed but not registered under FAME-II from eligibility under EMPS. Additionally, thousands of vehicles currently held by OEM dealers, manufactured before the validity period of EMPS, face ineligibility for subsidies under the new scheme, posing a significant financial burden. Furthermore, OEMs are troubled by the exclusion of several vehicles from subsidies, both in dealerships and factories, leading to potential financial setbacks. Delays in EMPS certificate issuance and approval by MHI, along with the requirement for recertification under the new scheme, are also worrisome for industry stakeholders. Executives from electric two-wheeler companies argue that the terms of EMPS are cumbersome, requiring re-registration of dealers and vehicles to qualify for subsidies. This poses operational challenges, particularly considering the industry's typical inventory turnover rates. Amidst these concerns, industry representatives have proposed solutions such as seamless transfer of vehicles from the FAME-II portal and providing undertaking letters confirming previous submissions. MHI officials have indicated willingness to consider these proposals, although noting that vehicle eligibility for subsidies is contingent upon registration, not sale. (KNN Bureau) 37136 https://knnindia.co.in/news/newsdetails/sectors/electric-two-wheeler-makers-raise-concerns-over-revised-emps-2024-subsidies 2024-03-22 16:42:42 knnindia.co.in Electric Two-Wheeler Makers Raise Concerns Over Revised EMPS 2024 Subsidies