EMPS to be extended beyond Sep: HD Kumaraswamy

The Electric Mobility Promotion Scheme (EMPS) will be extended beyond its original end date of September 2024, Union Minister for Heavy Industries, HD Kumaraswamy told reporters after his address at the Automotive Component Manufacturers Association of India’s 64th Annual Session.

This will be the second extension of the EMPS.

Launched in March 2024 with an outlay of ₹778 crore, the EMPS was designed to offer short-term support for the electric vehicle (EV) sector following the expiration of the FAME II (Faster Adoption and Manufacturing of Electric Vehicles) scheme.

The EMPS aimed to bridge the gap between FAME II and the anticipated launch of FAME III.

The extension is widely anticipated as FAME III, a more comprehensive and long-term policy for the EV industry, is yet to be finalised by the government. The minister noted that the shortcomings of FAME II will be addressed. In July, Kumaraswamy informed that all ministries have submitted their recommendations for the FAME III scheme, and its implementation is imminent.

It is widely held that without a new policy framework, discontinuing EMPS will potentially slow down India's efforts to transition to EVs.

In his address, Kumaraswamy highlighted that the auto component industry contributes over 2.7% to GDP and employs 4.5 million people. He attributed the industry's success to various government initiatives, including the PLI schemes, EMPS, and FAME programs.

“Despite global challenges and rising logistics costs, the Indian auto component industry has continued to thrive. With increasing exports this fiscal year, the industry has achieved a significant trade surplus, reflecting its resilience and growing global competitiveness. Together, we can build a future that strengthens our economy and secures India's position as a global leader in mobility, components, and advanced technology,” Kumaraswamy said during his address on September 9.

"Indian auto component industry is on the cusp of extraordinary growth, achieving a significant milestone of $74.1 billion in FY2024," as India progresses towards Viksit Bharat, said Shradha Suri Marwah, President of ACMA.

The FAME II scheme, originally budgeted at ₹10,000 crore for three years from April 1, 2019, was extended until March 31, 2024, with an additional ₹1,500 crore, raising the total budget to ₹11,500 crore. Its goal was to boost demand for electric vehicles, promote affordable, eco-friendly public transport, and incentivize advanced battery technology.