Modi government’s Holi gift to EV manufacturers, EMP scheme approved

EMP Scheme: The Modi government at the Center has given a big gift to electric vehicle manufacturing companies and its buyers before Holi. It is reported that the government has approved the Electric Mobility Portable Scheme 2024 (EMP Scheme 2024) to promote the manufacturing, sale and purchase of electric vehicles and related equipment. According to media reports, Commerce and Industry Minister Piyush Goyal has said that through this scheme, an effort has been made to promote the manufacturing of electric vehicles in India and attract electric vehicle manufacturing companies from around the world. The biggest thing is that under this scheme any company will now be required to invest at least 500 million dollars i.e. Rs 4,150 crore. It will also be entitled to various duty concessions.

Make in India promotion

The Ministry of Commerce and Industry said that it will provide access to advanced technology to India’s electric vehicle users. Apart from this, the scheme will promote ‘Make in India’ initiative. Electric vehicles will strengthen the EV ecosystem by promoting healthy competition among manufacturers, leading to higher production volumes, economies of scale, lower costs of production and reduced imports. The ministry has said that this will reduce the import of crude oil and reduce the trade deficit. With this, air pollution will reduce in Indian cities and will have a positive impact on health and environment.

EMP scheme before the validity of FAME-2 scheme ends

Let us tell you that the FAME-2 scheme implemented by the government to promote electric vehicles in India was expiring on 31 March 2024. The government has approved the EMP scheme before the validity of this scheme ends. FAME-2 Scheme The Central Government had started the FAME-2 Subsidy Scheme in the year 2019. The government initially allocated Rs 10,000 crore for this scheme, which was increased to Rs 11,500. The validity of the government’s FAME-2 scheme is expiring on 31 March 2024.

Government will spend Rs 500 crore

According to media reports, the government has decided to spend Rs 500 crore under the EMP scheme. Of this amount, about Rs 493.55 crore will be spent on subsidies and demand incentives. At the same time, about Rs 6.45 crore will be spent on Information, Awareness and Communication (IEC) activities and Project Management Agency. It is also being told that the focus of EMP Scheme 2024 is mainly on increasing the registration of electric vehicles for commercial use. Private and corporate owned registered electric two-wheelers are also included in this.

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What is the purpose of EMP scheme?

The biggest thing is that the government’s EMP scheme has been designed to speed up the adoption of electric two-wheelers and three-wheelers. This will promote the development of manufacturing ecosystem of electric vehicles in the country. Taking important steps towards green mobility, a target has been set to adopt about 3,72,215 vehicles under the EMP scheme. This includes 3,33,387 electric two-wheelers and 38,828 electric three-wheelers.

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