KEY HIGHLIGHTS
- Total Rs 500 crore expenditure
- Scheme will go into effect from April 1, 2024
- Demand incentive has also been extended
Under the recently announced Electric Mobility Promotion Scheme 2024 by the Ministry of Heavy Industries, e-scooters can receive an incredible advantage of Rs 10,000. A total of 333.39 crore in funds are allocated to about 3,33,387 2-W Evs. Although the entire plan pays for the entire 500 crore expenditure. Also, you can join our 91Wheels WhatsApp Group for the latest automotive updates.
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Electric Mobility Promotion Scheme: Benefits On Evs
The program encourages the use of EVs, with a focus on two- and three-wheelers, to promote the shift to green mobility.
The program also aims to provide offers for three-wheelers, with about 41,306 of them receiving support of Rs 25,000 for each. The Electric Mobility Promotion Scheme 2024, will go into effect from April 1 to July 31, 2024.
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Electric Mobility Promotion Scheme: Demand Incentive
The demand incentive has also been extended by the government under the plan, from Rs 10,000/kWh to Rs 5,000/kWh. These incentives aid in encouraging the decrease in acquisition costs.
Customers (buyers/end users) would have access to a demand incentive in the form of an upfront reduction in the price of an electric vehicle (EV), which will subsequently be refunded to the OEM by the Indian government.
Two-wheelers (electric) (e-2W) and three-wheelers (electric), including registered e-rickshaws and e-carts and L5 (e-3W), are the vehicle types that will be eligible for the demand incentive. 15% of the ex-factory price will be the additional ceiling on the incentive for e-2W and e-3W.
The FAME II subsidy, which has an outlay of Rs. 11,500 crores for the period from April 1, 2019, to March 31, 2024, is nearing its expiration. However, it is still unknown whether or not FAME 3 will be released.
Verdict
On the one hand, this scheme provide a very brief benefit break in the midst of the FAME Subsidy's termination, but they also show that the government supports the adoption of sustainable transportation.
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