On Wednesday, the Union Ministry of heavy industries launched the Electric Mobility Promotion Scheme 2024 to support sales of electric vehicles till July with an outlay of ₹500 crore.
This comes just before the ₹10,000 crore Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) II scheme ends on 31 March.
Incentives worth ₹333.39 crore have been set aside for electric two-wheelers under this new scheme.
The allocation for e-rickshaws and e-carts stands at ₹33.97 crore. Another ₹126.19 crore would go to promote sales of electric three wheelers with speeds higher than 25 kilometres per hour, known as L5.
However, incentives would not be provided for four-wheelers. Subsidies under FAME II are available for four-wheeled vehicles.
The new scheme would offer a subsidy of ₹10,000 per electric two-wheeler, ₹25,000 per e-rickshaws and e-carts and ₹50,000 per heavy electric three wheelers.
Union minister for heavy industries, Mahendra Nath Pandey said, ‘Through this newly launched ₹500 crore scheme, the ministry of heavy industries reiterates its commitment towards e-mobility’.
The ministry had planned FAME India Phase II scheme for a period of five years starting from April 1, 2019 with a total budgetary support of ₹10,000 crore.
According to data from the National Automotive Board, so far under phase-II of FAME scheme, nearly 1.47 million vehicles have been sold, 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.
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