India Gets New EV Incentive Scheme Ahead Of FAME-II Expiry
The Electric Mobility Promotion Scheme 2024 has an outlay of Rs 500 crore over four months, for electric two and three-wheelers.
The central government has announced a new scheme to promote the adoption of electric mobility in India, ahead of the expiration of a previous scheme that’s lasted for five years.
The Electric Mobility Promotion Scheme 2024 has an outlay of Rs 500 crore over four months for electric two-wheelers and three-wheelers, according to a Ministry of Heavy Industries notice seen by NDTV Profit.
The scheme will support as many as 3,33,387 electric two-wheelers, with an incentive of Rs 5,000/kWh and not exceeding Rs 10,000 per vehicle. That pegs the total outlay for electric two-wheelers at Rs 333.39 crore.
Among electric three-wheelers, Rs 33.97 crore has been set aside for 13,590 e-rickshaws for an incentive of Rs 5,000/kWh not exceeding Rs 25,000 per vehicle. For electric autos producing more than 0.25 kW of power, the incentive is set at Rs 5,000/kWh and not exceeding Rs 50,000 per vehicle. The total outlay here is Rs 126.19 crore.
The announcement of the Electric Mobility Promotion Scheme 2024 comes a fortnight ahead of the expiry of the FAME-II scheme for EV subsidies.
The government first rolled out the Scheme for Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in 2015 to push the adoption of electric vehicles in India. A second phase was implemented in 2019 for three years, only to be extended until March 31 to account for disruptions caused by the Covid-19 pandemic.
While FAME-I had a budgetary outlay of Rs 895 crore, FAME-II had a much bigger allocation of Rs 10,000 crore. This was increased to Rs 11,500 crore to account for pending liabilities that are accruing.
