EMPS 2024 (Syllabus: GS Paper 2 – Govt Schemes)

Context: Recently, on April 1, 2024, India implemented the Electric Mobility Promotion Scheme (EMPS), 2024, aiming to incentivize the adoption of electric two-wheelers and three-wheelers and foster the growth of an electric vehicle (EV) manufacturing ecosystem.

Electric Mobility Promotion Scheme 2024

• About: The Ministry of Heavy Industries, Government of India, in collaboration with the Department of Expenditure, Ministry of Finance, is launching the Electric Mobility Promotion Scheme 2024 (EMPS 2024).
• Objective: EMPS 2024 aims to expedite the uptake of Electric Vehicles (EVs) across India.
• Financial Allocation: EMPS 2024 is a fund-limited scheme with a total budget of Rs. 500 crore.
• Duration of the Scheme: The scheme is set to operate for a duration of four months, commencing from April 1, 2024, to July 31, 2024.
• Focus: EMPS 2024 prioritizes the adoption of electric two-wheelers (e-2W) and three-wheelers (e-3W) to bolster green mobility initiatives and foster the growth of the EV manufacturing ecosystem.
• Eligible EV categories: Two Wheelers (electric) (e-2W) and Three-wheeler (electric) including registered e-rickshaws & e-carts and L5 (e-3W).
• Components of EMPS 2024:

oSubsidies/Demand Incentive: incentive for electric 2W (e-2W) and electric 3 W including registered e-rickshaws & e-carts and L5 (e-3W)

oAdministration of scheme: Including IEC (Information, Education & Communication) activities and fee for Project Management Agency.

Multiple Caps

• Incentive Caps: EMPS and FAME II both impose caps on incentives for electric vehicles (EVs), but with different structures.
• Impact on Price and Incentives: EMPS's multiple caps lead to reduced monetary support, potentially increasing vehicle prices.
• Effect on Vehicle Affordability: CSE estimates significant reductions in incentives under EMPS, notably by 63% for two-wheelers and 37-38% for e-autos and e-rickshaws.