Key Highlights:
- Revolt Motors and Greaves Electric Mobility reinstated for new EV subsidies.
- Companies were previously fined ₹469 crore for violating FAME-II norms.
- EMPS to subsidize 3.72 lakh electric two- and three-wheelers.
- The government increases budget spending to ₹778 crore to support EV sales.
The Indian government has reinstated subsidies for Revolt Motors and Greaves Electric Mobility after the companies resolved previous violations under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. This decision comes after the Heavy Industries Ministry launched the Electric Mobility Promotion Scheme (EMPS) in March 2024 to provide incentives for electric two- and three-wheelers.
Subsidy Reinstatement After Penalties
The government fined Revolt Motors and Greaves Electric ₹469 crore for not adhering to localization norms under the FAME-II scheme. After paying back ₹170 crore to the government, both companies have now become eligible for subsidies under the new EMPS. This reinstatement allows them to apply for and receive financial incentives designed to promote electric mobility in India.
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Launch of the Electric Mobility Promotion Scheme (EMPS)
The EMPS, introduced in March 2024, aims to provide subsidies for 3.72 lakh electric two- and three-wheelers. The initiative was launched as the auto sector awaited the third subsidy phase under the FAME program. The government has increased budget spending to ₹778 crore to support the sale of 5.61 lakh electric vehicles, with ₹147.32 crore in claims already filed for 1.01 lakh EVs sold since April 1st.
Wider Impact and Participation
Revolt Motors and Greaves Electric are now part of a broader group of companies benefiting from the EMPS, including major players like Hero MotoCorp, Bajaj, TVS, Ather, Ola, and Kinetic Green. While Revolt and Greaves have resolved their issues, other manufacturers like Hero Electric and Okinawa Autotech have taken legal action against the government’s penalties, reflecting the ongoing challenges in the industry.
ELCTRIK Speaks
The reinstatement of Revolt Motors and Greaves Electric Mobility for new EV subsidies under the EMPS marks a significant development in India’s push towards sustainable transportation. As the government continues to refine its policies, these subsidies will play a crucial role in promoting the adoption of electric vehicles across the country, despite the challenges faced by some manufacturers in complying with localization norms.