EMPS Extension Announced Ahead of FAME III Launch

Electric Mobility Promotional Scheme (EMPS) was launched in March and executed from 1st of April but it was scheduled to end on July 31st. Now it has been extended to September 30th. Union Minister for Heavy Industries HD Kumaraswamy said it will continue for a couple more months until Faster Adoption and Manufacturing of Electric Vehicles (FAME-III) arrives. EMPS is a temporary solution of providing subsidies to EV manufacturers as per now. 

If approved, this will mark the second extension of the EMPS, which was originally launched for a four-month period from April 1 to July 31 with an initial budget of ₹500 crore. The scheme was previously extended by two months before the original deadline, with its budget increased to ₹778 crore.

FAME III is about to launch soon in next two months. 

But what’s the exact difference between FAME subsidy and EMPS?

FAME subsidy started in 2015 and it was a four year plan with a Rs. 529 crores budget and the first phase completed in 2019. FAME I has supported 2.78 lakh vehicles in which the government supported with Rs. 359 crores and also spent Rs. 895 crores in operations. 

Later when FAME I ended the Ministry of Heavy Industry launched FAME II in April 2019 with a budget of 10,000 crores. 

Through this scheme, the government aims to promote the adoption of eco-friendly vehicles by offering various incentives. For electric two-wheelers, a total of 10 lakh registered vehicles will be eligible for a ₹ 20,000 incentive each. Similarly, 35,000 electric four-wheelers, priced up to ₹ 15 lakhs ex-factory, can benefit from a ₹ 1.5 lakh incentive.

Hybrid four-wheelers aren't left out either, with incentives ranging from ₹ 13,000 to ₹ 20,000 for vehicles within the same price range. The scheme also extends to 5 lakh e-rickshaws, each of which can receive a ₹ 50,000 incentive.

Finally, 8,000 e-buses, capped at an ex-factory price of ₹ 2 crores, will be eligible for a generous ₹ 50 lakh incentive. This initiative demonstrates a strong commitment to encouraging sustainable transportation solutions.

After FAME II Subsidy Ministry of Heavy Industry launched EMPS with Rs. 500 crores budget. According to Business Standard, as of August 15, the EMPS had supported 334,260 electric vehicles out of a target of 560,000 units, or 60% of its amended aim.

Over 42% of the monies used from the previous budget, or Rs 214 crore, or 27% of the Rs 778 crore allotted, have been presented in the form of claims.