For the first time, this scheme is being introduced by the Ministry of Heavy Industries with the approval of the Department of Expenditure, Ministry of Finance, to further accelerate the adoption of EVs in the country. 

This is a fund-limited scheme with a total outlay of Rs. 500 crore for the period of 4 months, w.e.f. 1st April 2024 till 31st July 2024, for faster adoption of electric two-wheeler (e-2W) and three-wheeler (e-3W) to provide further impetus to the green mobility and development of electric vehicle (EV) manufacturing eco-system in the country.  

Eligible EV categories 

a) Two Wheelers (electric) (e-2W) 

b) Three-wheeler (electric) including registered e-rickshaws & e-carts and L5 (e-3W) 

With greater emphasis on providing affordable and environment-friendly public transportation options for the masses, scheme will be applicable mainly to those e-2W and e-3Ws registered for commercial purposes. Further, in addition to commercial use, privately or corporate-owned registered e-2W will also be eligible under the scheme.

Components of EMPS 2024

Components 

Description

Total Fund requirement (INR in crore)

Subsidies/Demand Incentive

incentive for electric 2W (e-2W) and electric 3 W including registered e-rickshaws & e-carts and L5 (e-3W) 

 

493.55

Administration of scheme

including IEC (Information, Education & Communication) activities and fee for Project Management Agency 

 

6.45

Total

 

500

 

Target numbers

The Scheme aims to support 3,72,215 EVs including e-2W (3,33,387) and e-3W (38,828 including 13,590 rickshaws & e-carts and 25,238 e-3W in L5 category). To encourage advance technologies, the benefits of incentives, will be extended to only those vehicles which are fitted with advanced battery. 

 

Aatma Nirbhar Bharat

The Scheme promotes an efficient, competitive and resilient EV manufacturing industry in the country thereby promoting the Prime Minister’s vision of Aatma-Nirbhar Bharat. For this purpose, Phased Manufacturing Programme (PMP) has been adopted which encourages domestic manufacturing and strengthening off EV supply chain. This shall also create significant employment opportunities along the value chain.

The notification and guidelines for EMPS 2024 are being issued by MHI separately.

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