The Union Ministry of Heavy Industries introduced the Electric Mobility Promotion Scheme 2024 on Wednesday, aiming to encourage the sales of electric vehicles until July. The scheme has a budget of ₹500 crore.
Before the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) II scheme concludes on March 31, this new initiative has been rolled out.
Under this scheme, incentives amounting to ₹333.39 crore have been allocated for electric two-wheelers. Additionally, ₹33.97 crore has been set aside for e-rickshaws and e-carts. Another ₹126.19 crore will promote the sales of electric three-wheelers with speeds higher than 25 kilometres per hour, known as L5.
However, there won’t be any incentives provided for four-wheelers, as subsidies under FAME II already cover them.
On March 7, CNBC TV18 first reported about the ₹500 crore allocation for EV sales subsidies until July 31, 2024.
The new scheme will offer a subsidy of ₹10,000 per electric two-wheeler, ₹25,000 per e-rickshaw and e-cart, and ₹50,000 per heavy electric three-wheeler.
“The Ministry of Heavy Industries reaffirms its commitment to e-mobility through this newly launched ₹500 crore scheme,” said Mahendra Nath Pandey, the Union Minister for Heavy Industries.
The ministry had earlier launched the FAME India Phase II scheme for five years starting from April 1, 2019, with a total budget of ₹10,000 crore.
According to data from the National Automotive Board, approximately 1.47 million vehicles have been sold under phase-II of FAME scheme, including 1.3 million two-wheelers, 150,613 three-wheelers, and 18,794 four-wheelers. The government is yet to finalize the third phase of the scheme.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
