Lok Sabha Question No. 4393 (UNSTARRED), answered on 2019-01-08
Subject: Electric Vehicles
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: RAKESH SINGH

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

## LOK SABHA UNSTARRED QUESTION No. 4393 TO BE ANSWERED ON 08.01.2019

## Electric Vehicles

## 4393.    SHRI RAKESH SINGH:

Will the Minister of HEAVY INDUSTRIES & PUBLIC ENTERPRISES be pleased to state:

- (a) whether any policy has been formulated regarding electric vehicles in the country;
- (b) whether the present policy is not at par with the global standards;
- (c) whether there is need to make changes in the present policy;
- (d) if so, the details thereof; and
- (e)  whether  the  Government  proposes  to  take  appropriate  steps  to  promote  the  use  of  ecofriendly vehicles in the country?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI BABUL SUPRIYO)

(a)  to  (e):  In  2011-12,  Government  of  India  had  launched  a  National  Mission  on  Electric Mobility  (NMEM).  Subsequently,  under  the  mission,  a  vision  document  NEMMP  2020 (National Electric Mobility Mission Plan) was formulated and launched in the year 2013. The NEMMP 2020 laid the vision and provides the roadmap for achieving significant penetration of  efficient  and  environmentally  friendly  electric  vehicle  (including  hybrids)  technologies (xEVs) in India by 2020.

In  fact,  the NEMMP  2020  was  based  on  a  detailed  study  after  wide-ranging deliberations and  consultations involving  all  stakeholders  from  Government,  Industry, academia,  research  associations  and  considering  the  extensive  knowledge  of  developments around the world.

Subsequently,  as  part  of  this  Mission  Plan,  the  Government    notified  FAME  India Scheme [Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India] in the year 2015, initially for a period of 2 year from 1st April 2015 to 31st March 2107, which was extended further till 31st March 2019. The Scheme has four focus areas namely Demand Creation, Pilot Project, Technology Development/ R&D and Charging Infrastructure.

To promote use of  Electric  Vehicles  (EVs),  the  buyer  of  electric/hybrid  vehicles  is given an upfront reduction in purchase price by the dealer at the time of purchase of xEVs under Demand Creation focus area of the scheme. So far, about 2.60 lakh XEVs have been supported  through  demand  incentive  under  the  scheme.  Further,  under  new  GST  regime Electric Vehicles are kept in the lower bracket of 12% GST rate (with no Cess) as against the 28% GST rate with Cess up to 22% for conventional vehicles.

The Phase-I of the FAME-India Scheme has been successful so far and the learnings from the scheme have been woven into the second phase of the proposed scheme. The PhaseII of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-India) Scheme proposes to give a push to electric vehicles (EVs) in  public transport and seeks to encourage  adoption  of  EVs  by  way  of  market  creation  and  demand  aggregation.  The  draft scheme has envisaged the holistic growth of EV industry, including providing for charging infrastructure,  research  and  development  of  EV  technologies  and  push  towards  greater indigenization. The scheme has not been finalized yet.

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