Lok Sabha Question No. 3688 (UNSTARRED), answered on 2020-03-17
Subject: FAME India Scheme
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Nalin Kumar Kateel, Sumalatha Ambareesh

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

## LOK SABHA UNSTARRED QUESTION NO. 3688

ANSWERED ON 17.03.2020

## FAME INDIA SCHEME

## 3688. SHRI NALIN KUMAR KATEEL: SHRIMATI SUMALATHA AMBAREESH:

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

- (a) whether the Government has launched Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India) scheme in 2015;
- (b)  if  so,  the  details  and  the  number  of  electric  vehicles  sold  since  the  launch  of  FAME India scheme in the country;
- (c)  whether  the  Government  maintains  performance  data  of  the  scheme  and  if  so,  the details thereof, State-wise;
- (d)  whether  the  Government  has  felt  the  need  to  further  encourage  the  use  of  electric vehicles in the country; and
- (e) if so, the details thereof and the steps being taken by the Government in this regard?

## ANSWER THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI PRAKASH JAVADEKAR)

(a) to (e):  Yes, Sir. The Government has launched Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in the year 2015 to promote adoption of Electrical Vehicles (EVs) with an aim to reduce dependency on fossil fuel. The Phase-I of this Scheme was initially launched for a period of 2 years, commencing from 1 st April 2015, which was subsequently extended from time to time and the last extension was allowed up to 31 st March 2019 with the total outlay of Rs. 895 Crore.

Based  on  outcome  and  experience  gained  during  the  Phase-I  of  FAME  India Scheme  and  after  having  consultations  with  all  stakeholders  including  Industry  and Industry  Associations,  the  Government  notified  Phase-II  of  FAME  India  Scheme  on  8 th March 2019, which is for a period of three years commencing from 1st 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 incentives about 7000 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  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. Further, DHI sanctioned 425 electric and hybrid buses  to  various  cities  in  the  country.  Under  Phase-II  of  FAME  India  Scheme,  about 15,800 Electric Vehicles have been supported till 12.03.2020 by way of Demand Incentive. Further,  5595  electrical  buses  have  been  sanctioned  to  various  State/  City  Transport Undertakings under Phase-II of the Scheme.  The performance data of the scheme statewise  in  the  country  are  available  on  the  website  of  the  Department  i.e. www.fameindia.gov.in (for FAME I scheme)and www. fame2.heavyindustry.gov.in (for fame 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.

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