Lok Sabha Question No. 3325 (UNSTARRED), answered on 2021-03-16
Subject: Hybrid and Electric Vehicles
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Narendra Kumar, Sumedhanand Saraswati

## MINISTRY OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES

## GOVERNMENT OF INDIA DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION NO. 3325

ANSWERED ON 16.03.2021

## HYBRID AND ELECTRIC VEHICLES

## 3325.   SHRI NARENDRA KUMAR: SHRI SUMEDHANAND SARASWATI:

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

- (a) whether  efforts  are  being  made  by  the  Government  to  boost  the  manufacturing  of hybrid and electric vehicles in the country;
- (b) if  so,  the  details  of  the  vehicles  sold  out  since  the  inception of Faster  Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India scheme in the country;
- (c) whether  efforts  are  being  made  to  encourage  the  use  of  electric  vehicles  and  make them affordable in the country; and
- (d) if so, the steps taken or proposed to be taken by the Government in this regard?

## ANSWER

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

(a) to (d): Yes, Sir. Department of Heavy Industry formulated a Scheme namely Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in the year 2015 to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same. Phase-1 of the scheme was available up to 31 st March, 2019.

Based on the outcome and experience gained during Phase-I of FAME India Scheme, phase-II of FAME India Scheme was notified on 8 th March, 2019 for a period of three years commencing from 1 st April,  2019,  with  a  total  budgetary  support  of  Rs.  10,000  crore.  This phase  mainly  focusses  on  supporting  electrification  of  public  &  shared  transportation  and aims to support, through demand incentive, 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.

In  the  First  Phase  of  the  Scheme,  about  2.8  lakh  hybrid  and  electric  vehicles  were supported by way of demand incentive, amounting to about Rs 359 crore. 425 electric and hybrid buses were deployed as sanctioned to various cities in the country with total cost of about 280 Crores.

Under  Phase-II of  FAME  India  Scheme,  56,900  Electric  Vehicles  have  been supported, as on 10.03.2021, by way of Demand Incentive amounting to about Rs. 170 Cr. Further,  6265  electrical  buses  have  been  sanctioned  to  various  State/  City  Transport Undertakings under Phase-II of the Scheme. This involves Government incentive of around Rs. 3000 Cr.

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  for electric vehicle charging stations in private and commercial buildings.

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