Modi government extends EMPS subsidy scheme for EVs beyond September
Union Minister for Heavy Industries, HD Kumaraswamy, has announced the extension of the Electric Mobility Promotion Scheme (EMPS) for EVs, beyond its initial end in September. The initiative will continue until the debut of the third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. This decision was disclosed at an annual convention, organized by the Automotive Component Manufacturers Association of India (ACMA).
Extension bridges gap to FAME III
The extension of the EMPS scheme is designed to bridge the gap between its current phase and the implementation of the FAME III program. This decision was made due to ongoing efforts by the central government to address issues encountered during the FAME II scheme, with a more comprehensive and long-term policy for EVs still under development. The EMPS was initially set up as a short-term support measure for India's EV sector following the conclusion of FAME II.
EMPS's initial timeline and funding
The EMPS was originally scheduled to run from April to July 2024, with a total budget of ₹500 crore. However, it received its first extension in July, pushing the end date to September. This marks the second time that the scheme has been extended. The Ministry of Heavy Industries launched EMPS in March 2024, to boost India's EV manufacturing ecosystem further after FAME II ended.
EMPS aims to support over 5.6L EVs
In July, the budget for the EMPS scheme was increased to ₹778 crore. The MHI has stated that the scheme aims to support around 5.6 lakh EVs, primarily two-wheelers. However, these incentives are only available for EVs equipped with advanced batteries. This initiative is part of India's broader efforts to promote green mobility, and develop an EV manufacturing ecosystem in the country.
