Government Launches ₹778 Crore Electric Mobility Promotion Scheme 2024

Ministry of Heavy Industries is currently implementing the following schemes for accelerating the adoption of electric vehicles in the country:

1. Electric Mobility Promotion Scheme 2024 (EMPS) with an outlay of  ₹ 778 Crore for a period 6 months, w.e.f. 1^st April 2024 till 30^th September 2024, which provides incentives to buyers of e-2W and e-3W.
2. Production Linked Incentive Scheme for Automobile and Auto Component Industry (PLI-AAT) with a budgetary outlay of  ₹ 25,938 Crore. The scheme incentivises various categories of electric vehicles including e-2W, e-3W, e-4W, e-buses & e-trucks also.
3. Production Linked Incentive Scheme for manufacturing of Advanced Chemistry Cell (PLI-ACC) in the country with a budgetary outlay of ₹18,100 Crore.
4. Scheme to Promote Manufacturing of Electric Passenger Cars to attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles.

The Ministry of Heavy Industries (MHI) formulated a Scheme namely; Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015 to promote adoption of electric/ hybrid vehicles (xEVs) in India. The Phase-I of the scheme was available up to 31^st March, 2019 with budget outlay of Rs. 895 Crore. This phase of FAME India Scheme had four focus areas i.e. technological development, demand generation, pilot project and charging infrastructure components.

In the 1st phase of the scheme, about 2.8 lakh xEVs were supported with total demand incentives of Rs. 359 Crore (Approx). In addition, 425 electric and hybrid buses, as sanctioned under first phase of the scheme were deployed across various cities in the country with Government Incentive of about Rs. 280 Crore. The Ministry of Heavy Industries had also sanctioned about 520 Charging Stations/ Infrastructure for Rs. 43 Crore (approx.) under Phase-I of FAME India Scheme.

Projects worth about Rs. 158 Crore were sanctioned for the technology development projects like establishment of testing Infrastructure, setting up of ‘Centre of Excellence’ for Advanced Research in Electrified Transportation, Battery Engineering, etc. to various organisations / institutions like Automotive Research Association of India (ARAI), IIT Madras, IIT Kanpur, Non Ferrous Material Technology Development Centre (NFTDC), Aligarh Muslim University (AMU), etc.

Based on outcome and experience gained during Phase-I of FAME India Scheme and after having consultations with all stakeholders, including Industry and Industry Associations, the Government notified Phase-II of FAME India Scheme for a period of five years commencing from 1^st Apri1, 2019 with a total budgetary support of Rs. 11,500 crore.

This phase-II mainly focused on supporting electrification of public & shared transportation, and aimed to support through demand incentive 7,262 e-Buses, 1,55,536 e-3 Wheelers, 30,461 e-4 Wheeler Passenger Cars and 15,50,225 e-2 Wheelers. In addition, creation of charging infrastructure is also supported under the Scheme.

Under Phase-II of FAME India Scheme, as on 31/07/2024, claims of 16,71,606 electric vehicles for Rs. 6,825 crore have been submitted for reimbursement of subsidy by the OEMs (EV manufacturers) as per http://fame2.heavyindustries.gov.in/dashboard. aspx. Category-wise details of claims submitted are as under:

Further, 6862 electric buses were sanctioned to various cities/STUs/State Govt. entities for intra-city operations under the FAME-II Scheme. Out of 6,862 e-buses, 4,853 e-buses have been supplied till 31^st July, 2024.

MHI has also sanctioned Rs. 800 Crore as capital subsidy to the three Oil Marketing Companies (OMCs) of the Ministry of Petroleum and Natural Gas (MoPNG) for establishment of 7,432 electric vehicle public charging stations. Subsidy of Rs.560 crore has already been released to OMCs. Further, in March 2024, MHI sanctioned additional Rs.73.50 Crore under FAME II to OMCs for set up/upgradation 980 public fast charging stations by installing new chargers across the country. Subsidy of Rs.51.45 crore has already been released to OMCs.