The Centre has given certification to over 20 vehicle OEMs to take part in the short-term e-mobility promotion scheme EMPS.
According to sources, these 20 companies, including all the major two and three-wheeler manufacturers, can now avail of incentives under the scheme.
“The process for granting EMPS certificates has been completed. The scheme is now expected to fully pick up pace and support EV adoption in the country,” sources told FE.
The EMPS, which is valid for only four months (April–July 2024) with an outlay of Rs 500 crore, aims to subsidise electric two-wheeler, three-wheeler, and e-rickshaw purchases by consumers.
It may be replaced or extended once a new central government is formed in June.
The new scheme aims to support the adoption of over 3,30,000 e-two-wheelers, over 40,000 smaller e-three-wheelers (e-rickshaws or e-carts), and over 25,000 large e-three-wheelers (L5 category).
As such, the maximum incentive per electric two-wheeler has been capped at Rs 10,000, for e-rickshaws or e-carts at Rs 25,000, and for L5 vehicles, it has been kept at Rs 50,000 per vehicle.
Prior to EMPS, the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-II) provided an incentive push to electric vehicle (EV) sales by offering subsidies since these are relatively more expensive than internal combustion engine (ICE) vehicles.
The FAME-II came to an end on March 31, 2024, and the central government decided not to come out with a new variant of it in the form of the FAME-III.
On its part, the Ministry had to provide fresh registration under the new scheme to re-validate products and deter FAME-II defaulters from entering EMPS.
