Govt announces Rs 500 crore for special 4-month electric mobility promotion scheme

EV two-wheeler

The central government on March 13 announced a new scheme of Rs 500 crore to promote sale of electric two and three wheelers. The Electric Mobility Promotion Scheme 2024 is for a special 4-month electric mobility promotion till July.

The special new electric mobility promotion scheme will support electric 2-wheelers, 3-wheelers, e-rickshaws, said Ministry of Heavy Industries.

"This commitment is made by the Ministry of Heavy Industries once again that we are committed to e- mobility and will continue to increase it at every level and will take the country to the forefront of green energy," the ministry stated.

Breakdown of the scheme:

3.37 lakh electric two-wheelers. Incentive - Rs 5,000/KWH. Cap at Rs 10,000

41,306 electric three-wheelers. Incentive Rs 5,000/KWH. Capped at Rs 25.000

13,590 e-rickshaws. Incentive Rs 5,000/KWH. Cap at Rs 25,000

25,238 L5 electric three-wheelers. Incentive Rs 5,000/KWH. Cap at Rs 50,000.

In February 2024, the government had raised the allocation under the second iteration of Faster Adoption & Manufacturing of Electric Vehicles in India (FAME-II) scheme to Rs 11,500 crore, up from Rs 10,000 crore.

At present, Phase-II of the FAME India scheme is being implemented for a period of five years from April 1, 2019. It was set to expire on March 31, 2024.

The FAME India scheme seeks to facilitate the uptake of EVs and chargers by subsidising them. The programme also aims to spur localisation of EV components while also driving sales up.

Initiated in 2019, FAME II has so far provided subsidy on sales of nearly 1.2 million two-wheelers, 141,000 three-wheelers, and 16,991 four-wheelers. More than Rs 5,829 crore has been disbursed under the FAME II scheme.