Lok Sabha Question No. 4507 (UNSTARRED), answered on 2021-03-23
Subject: Subsidy for Electric Vehicles
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Keshari Devi Patel

## GOVERNMENT OF INDIA

## MINISTRY OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION NO. 4507

ANSWERED ON 23.03.2021

## SUBSIDY FOR ELECTRIC VEHICLES

## 4507. SHRIMATI KESHARI DEVI PATEL:

Will  the  Minister  of  HEAVY  INDUSTRIES  AND  PUBLIC  ENTERPRISES भारी उद्योग एवं ऱोक उद्यम मंत्री be pleased to state:

- (a) the steps taken by the Government to promote electric vehicles in view of the limited reserves of Oil and Natural Gas in the country;
- (b) the details of the subsidy being provided to every buyer on the purchase of an electric vehicle;
- (c) the  details  of  the  changes  being  made  to  increase  the  power  of  the  battery  of  the electric vehicles;
- (d) whether the battery of these vehicles gets discharged very fast due to huge traffic jam in all district headquarters of Uttar Pradesh including National Capital Region of Delhi and if so, the details thereof;
- (e) whether the Government proposes to make a separate lane for electric vehicles and if so, the details thereof; and
- (f) whether  the  Government  also  proposes  to  increase  the  subsidy  on  procurement  of electric vehicles and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI ARJUN RAM MEGHWAL)

(a) & (b): Yes, Sir. Department of Heavy Industry (DHI) has formulated a scheme namely Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015 to promote adoption and manufacturing of electric/hybrid vehicles (xEVs) in India.  Phase-II of FAME India Scheme is being implemented w.e.f. 01 st April,  2019  for  a period of 3 years with a total budgetary support of Rs. 10,000 crores.  This phase focusses on supporting  electrification  of  public  &  shared  transportation  and  aims  to  support,  through subsidies, 7090 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2  Wheelers.    In  addition,  creation  of  charging  infrastructure  is  also  supported  to  address range anxiety among users of electric vehicles.

Under the scheme, incentives are being provided to purchasers of electric vehicles in the  form  of  an  upfront  reduction  in  the  purchase  price  of  Electric  Vehicles  used  for  public transport  or  those  registered  for  commercial  purposes  for  e-2W,  e-3W  and  e-4W.    Further, privately  owned  registered  e-2W  is  also  covered  under  the  scheme.  To  motivate  the manufacturers  to  shift  towards  long  range  vehicles,  the  demand  incentive  provided  to  the purchasers  of  these  electric  vehicles  is  linked  to  the  battery  capacity.    An  incentive  of  Rs. 10,000/KWH is given subject to capping at 20% of the cost of these vehicles.

Further, following initiatives have also been taken up by the Government of India for promotion of electric vehicles in the country -

- (i) GST on electric  vehicles  has  been  reduced  from  12%  to  5%;  GST  on  chargers/ charging stations for electric vehicles has been reduced from 18% to 5%.
- (ii) Ministry  of  Power  has  allowed  sale  of  electricity  as  'service'  for  charging  of electric vehicles.  This would provide a huge incentive to attract investments into charging infrastructure.
- (iii) The Government, vide S.O. 5333(E) dated 18th October, 2018, has also granted exemption  to  the  Battery  Operated  Transport  Vehicles  and  Transport  Vehicles running on Ethanol and Methanol fuels from the requirements of permit.
- (iv) In  the  budget  of  2019-20, the Hon'ble  Finance  Minister announced provision of additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles.
- (v) In order to promote electric vehicles, the Government has notified for retro-fitment of  hybrid  electric  system  or  electric  kit  to  vehicles  and  has  specified  the  type approval procedure of electric hybrid vehicles.
- (vi) The Ministry of Road Transport & Highways has notified certain specifications for the grant of licence to age group of 16-18 years to drive gearless E scooters/ Bikes upto 4.0 KW.
- (vii) Ministry  of  Housing  and  Urban  Affairs  has  made  amendment  in  the  Urban  and Regional Development Plans Formulation and Implementation (URDPFI) guidelines to provide electric vehicle charging stations in private and commercial buildings

(c) to (f): Sir,  no  such  proposal/  study  is  under  consideration  in  Department  of  Heavy Industry.

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