Lok Sabha Question No. 1953 (UNSTARRED), answered on 2020-03-03
Subject: Promotion of EVs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Sougata Ray

## MINISTRY OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES

## GOVERNMENT OF INDIA DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION NO. 1953 ANSWERED ON 03.03.2020

## PROMOTION OF EVs

1953. PROF. SAUGATA RAY:

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 for the promotion of Electric Vehicles (EVs) in the country;
- (b) whether the Government has asked the auto manufacturing companies to concentrate on production of electric vehicles in the country; and
- (c) if so, the details thereof?

## ANSWER THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES

## (SHRI PRAKASH JAVADEKAR)

(a): The Department of Heavy Industry is administering Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme for promotion of adoption of electric/hybrid vehicles (xEVs) in India since 01 st April, 2015. The Phase-I of the Scheme was extended from time to time and the last extension was allowed till 31 st March, 2019. Presently, Phase-II of FAME India Scheme is being implemented for a period of 3 years w.e.f. 01 st April, 2019 with a total budgetary support of Rs. 10,000 crore.  This phase will mainly focus on supporting electrification  of  public  &  shared  transportation,  and  aims  to support through demand incentive approx. 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler  Passenger  Cars  and  10  lakh  e-2  Wheelers.  With  greater  emphasis  on  providing affordable & environment friendly public transportation options for the masses, the scheme will  be  applicable  mainly  to  vehicles  used  for  public  transport  or  those  registered  for commercial  purposes  in  e-3W,  e-4W  and  e-bus  segments.  However,  privately  owned registered  e-2W  will  also  be  covered  under  the  scheme  as  a  mass  segment.    In  addition, creation of charging infrastructure will be 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  are supported  by  way  of  demand  incentive  amounting  to  about  Rs  359  crore.  Further,  DHI sanctioned 425 electric and hybrid buses to various cities in the country with total cost of about  300  Crores.  The  Department  of  Heavy  Industry  has  also  sanctioned  about  500 Charging Stations/ Infrastructure for Rs. 43 Crore (approx.) under Phase-I of FAME-India Scheme. Under Phase-II of FAME India Scheme, about 14,160 Electric Vehicles have been supported  till  26.02.2020  by  way  of  Demand  Incentive  amounting  to  about  Rs.  50Cr. Further,  5595  electrical  buses  have  been  sanctioned  to  various  State/  City  Transport Undertakings under Phase-II of the Scheme. This involves Government incentive of around Rs. 2800 Cr.

Department of Heavy Industry has also sanctioned 2,636 Electric Vehicles (EVs) Charging Stations  amounting  to  Rs  500  Crore  (Approx.)  in  62  cities  across  24  States/UTs  under FAME India (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) scheme phase II.

In addition, following initiatives were also taken up by the Government to promote the  use  of  electric/  hybrid  vehicles  (including  shared  mobility)  in  various  parts  of  the country -

(i) Under the new GST regime, GST on EVs has been reduced from 12% rate 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.

(b) & (c): The Government encourages adoption of electric vehicles in the country through FAME- India scheme and various other initiatives.

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