Good news for EV buyers, Govt brings new subsidy scheme, know how much will be the benefit

This is a good opportunity to buy an electric scooter. If you buy an electric scooter by 31 March 2024, you will get a discount of thousands of rupees. After March, the Faster Adoption and Manufacturing Electric Vehicles ie FAME 2 scheme will come to an end. The government has refused to extend its term. However, the government has announced to introduce the Electric Mobility Promotion Scheme (EMPS) instead. The scheme will come into effect from April 1 and will replace the FAME 2 scheme.

Many people fear that if they buy an electric vehicle in April, they will not get the benefit of the subsidy from the government. It is true that the benefit of FAME 2 subsidy will not be availed after March. But through EMPS you can get subsidy on purchase of electric two-wheeler and three-wheeler.

Subsidy up to Rs 10,000 on electric scooters and bikes

The Ministry of Heavy Industries has allocated Rs 500 crore for the new scheme. The scheme will start from April 1 and will be valid for four months. The government will provide a subsidy of up to Rs 10,000 on the purchase of an electric two-wheeler. After March, a maximum subsidy of Rs 10,000 will be given under Rs 5,000 per kilowatt hour (kWh) on the purchase of an electric scooter or electric bike.

As for electric three-wheelers, the government will provide a subsidy of up to Rs 50,000 on the purchase of electric auto rickshaws etc. In this too, the subsidy rule of Rs 5,000 per kilowatt hour (kWh) will be applicable. Let us tell you that under Fame 2, a subsidy of up to Rs 22,500 is available on electric two-wheelers and up to Rs 1.11 lakh on electric three-wheelers.

Will there be subsidy on electric cars and e-buses?

The government has not only reduced the subsidy on electric vehicles, but also excluded some categories. You will not get the benefit of EMPS subsidy on buying an electric car, it is excluded from the subsidy scheme. Electric buses have also been removed from the subsidy scheme.