electric-mobility-promotion-scheme-2024-to-be-extended

The Indian government will extend the Electric Mobility Promotion Scheme (EMPS) 2024 until the third phase of the 'Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle' (FAME) scheme is finalised, Union Minister of Heavy Industries HD Kumaraswamy said on Monday.

Speaking at the annual session of the Automotive Components Manufacturers Association (ACMA), Kumaraswamy said, “It will take some more time to finalise the third phase of FAME. The EMPS will be extended for another one or two months.”

The EMPS, which provides subsidies for electric two-wheelers and three-wheelers, was launched in April with an initial outlay of Rs 500 crore and extended till September 30 with an increased outlay of Rs 778 crore.

The scheme offers subsidies of up to Rs 10,000 for electric two-wheelers and up to Rs 50,000 for heavier electric three-wheelers such as autos and commercial vehicles.

Asking the industry not to worry about the impending end of the scheme, Kumaraswamy reassured, "It will be extended until FAME III is announced."

On FAME III, the minister noted that efforts are underway to address gaps identified in FAME II. “There will be some modifications, and we are working out the details internally,” he said, without specifying the budget for the next phase but promised that it would be revealed soon.

During his address, Kumaraswamy reiterated the government’s commitment to supporting India’s position as a global leader in manufacturing and innovation.

“Together, we can build a future that strengthens not only our economy but also India’s place as a global leader in mobility components and advanced technology,” he said.

CII President Sanjiv Puri, also speaking at the event, highlighted the importance of collaboration between the government, industry, and academia to achieve the goal of a developed India by 2047.

“The auto industry plays a significant role in this. We must focus on skilling the workforce for future demands, fostering innovation, and building a sustainable supply chain to withstand global disruptions,” Puri stated.