Lok Sabha Question No. 239 (STARRED), answered on 2019-07-09
Subject: Promotion of Electric Vehicles
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Alok Kumar Suman

## HEAVY INDUSTRIES AND PUBLIC ENTERPRISES DEPARMENT OF HEAVY INDUSTRY

## LOK SABHA STARRED QUESTION No. 239 TO BE ANSWERED ON 09.07.2019

## Promotion of Electric Vehicles

239. DR. ALOK KUMAR SUMAN:

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state: (a) whether the Government has taken steps to promote the manufacturing of electric vehicles in the country; (b) if so, the details thereof; (c) the number of electric vehicles sold during the last two years; (d)  whether  the  Government  is  providing  any  subsidy  to  the  consumers  to  purchase  electric

- vehicles in the country; and
- (e) if so, the details thereof?

## ANSWER

## THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI ARVIND GANPAT SAWANT)

- (a) to (e): A statement is laid on the Table of the House.

*****

Statement referred to in reply to parts (a) to (e) of Lok Sabha Starred Question No. 239 for 09.07.2019  asked  by  Dr.  Alok  Kumar  Suman  Hon'ble  MP  regarding  'Promotion  of Electric Vehicles'

(a) to (e):Yes, Sir. In order to promote manufacturing of electric and hybrid vehicle (xEV) and to ensure sustainable growth of the same, Government notified a scheme namely Faster Adoption and  Manufacturing  of  (Hybrid  &)  Electric  Vehicles  in  India  [  FAME  India  Scheme]  Phase-I w.e.f. 1 st April 2015 for a period of 2 years with a total outlay of Rs.795 Crore. This scheme was further extended till 31 st March 2019 with the total outlay enhanced to Rs. 895 Crore.  Under the scheme, demand incentive was available to buyers of electric & hybrid vehicles (xEV) in the form of an upfront reduced purchase price to enable wider adoption.  About 2.78 lakh vehicles were  supported  under  this  scheme  by  way  of  extending  demand  incentives  of  Rs.  343  Crore [Approx].  As pilot project, 465 buses were also sanctioned to various cities / states under this phase  of  the  scheme.  In  addition,  several  projects  under  Technology  Platform  and  Charging Infrastructure were also sanctioned in this phase.

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, Department of Heavy Industry notified the Phase-II of FAME India Scheme on 8 th March 2019, which  is  for  a  period  of  three  years  commencing  from  1 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 about 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e4  Wheeler Passenger Cars and 10 lakh e-2 Wheelers through demand incentives. In addition, creation of charging infrastructure will be supported in selected cities and along major highways to address range anxiety among users of electric vehicles.

Various other initiatives which were also taken by the Government to promote electric mobility in the country are as mentioned hereunder -

(i) Under new GST regime, the rates of GST on Electric Vehicles has been kept in the lower bracket  of  12%  (with  no  Cess)  as  against  the  28%  GST  rate  with  Cess  up  to  22%  for conventional vehicles.

(ii) Ministry  of  Power  has  allowed  sale  of  electricity  as  'service'  for  charging  of  electric vehicles. This would serve as an incentive to attract investments into charging infrastructure.

(iii) Ministry of Road Transport Highways issued notification regarding exemption of permit in case of battery operated commercial vehicles.

The details of xEVs, category-wise, supported through FAME India Scheme in the last two years are given below : -

| S.No.   | Type of Vehicle    |   2017-18 |   2018-19 |   Total |
|---------|--------------------|-----------|-----------|---------|
| 1.      | Two Wheler (2W)    |     54833 |     77205 |  132038 |
| 2.      | Three Wheeler (3W) |       367 |      1833 |    2200 |
| 3.      | Four Wheeler (4W)  |      1731 |      2066 |    3797 |
| Total   | Total              |     56931 |     81104 |  138035 |

Under Phase-II of FAME India Scheme, incentive is being extended to the consumer for purchase of  electric  vehicles,  which  is  calculated  based  on  the  battery  capacity  of  all  eligible vehicles  i.e.  Rs.  10,000/KWh  for  all  vehicles  except  e-Buses,  for  which  the  incentive  is  Rs. 20,000/KWh. Detailed framework of incentive for each category of vehicle is stated in FAME Scheme Notification [S.O. No.1300(E) dated 8 th March 2019], which is available at Department website (www.dhi.nic.in).

*****