The central government introduced subsidies under a scheme called FAME to encourage the purchase of electric vehicles. The second phase (FAME-II) of which expired last April.…
The central government introduced subsidies under a scheme called FAME to encourage the purchase of electric vehicles. The second phase (FAME-II) of which expired last April. Then a new scheme called Electric Mobility Promotion Scheme or EMPS was introduced to subsidize the purchase of two-wheeler and three-wheeler electric vehicles.
The term of which expired in July but was extended till September by the Union Ministry of Heavy Industries. The government is yet to say whether the scheme, which is applicable till September 30, will be extended further. Under the EMPS scheme, a maximum subsidy of Rs 10,000 is available on electric scooters or bikes and up to Rs 50,000 on the purchase of battery three-wheelers.
As there is uncertainty over the subsidy extension, we suggest now is the right time to buy an electric two-wheeler. Popular electric scooters like Athe 450X, Ather Rizta, Ola S1 Pro, TVS iQube, Bajaj Chetak, and Hero Vida V1 have passed for this scheme.
While the initial allocation under the EMPS scheme was Rs 500 crore, the government increased it to Rs 778 crore till September. A total of 5.61 lakh electric vehicles are targeted to be subsidized. Out of which 5,00,80 are two wheelers and 60,709 are three wheelers. As a result, the cost of the buyers has decreased a lot. Now it remains to be seen whether the Union Ministry of Heavy Industries will extend the scheme or come up with a new scheme.
