Lok Sabha Question No. 3613 (UNSTARRED), answered on 2019-12-10
Subject: Promotion of Electric Vehicles
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Shankar Lalwani

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

## LOK SABHA UNSTARRED QUESTION NO. 3613

ANSWERED ON 10.12.2019

## PROMOTION OF ELECTRIC VEHICLES

## 3613. SHRI SHANKAR LALWANI:

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

- (a) whether the issue of pollution can be significantly reduced in the country through electric mobility;
- (b) if so, the details thereof;
- (c) whether the Government has issued any guidelines to promote electric vehicles in view of possibilities of electric mobility in the country; and
- (d) if so, the details thereof, Statewise?

## ANSWER

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

(a) to (d): Yes, Sir. There are multiple causes for pollution and vehicular pollution is one of the causes. The electric vehicles have zero on-road emission. The problem of pollution can be minimised by using electric vehicles in the country. In order to promote adoption of electric vehicles, Department of Heavy Industry formulated a scheme namely FAME-India Scheme [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India] in 2015 for the initial period of 2 years starting w.e.f. 01 st April, 2015 (Phase-I). The Phase-I of the Scheme was extended from time to time and the last extension was allowed up to 31 st March 2019. In this 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 resulting in saving of about 50 million liters of fuel and reduction of about 124 million Kg of CO2.

Presently, the Department of Heavy Industry is administrating Phase-II of FAMEIndia  Scheme  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  incentives about 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  will  be  also  supported  to address range anxiety among users of electric vehicles. The scheme is PAN India basis.

In addition, following initiatives were also taken up by the Government to promote electric vehicles use in various part of the country -

(i) Under new GST regime, GST on EVS is reduced from existing 12% rate to 5% 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 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) The  Government,  vide  draft  GSR  430(E)  dated  18th  June  2019  has  proposed exemption of registration fees for battery operated/electric vehicles to promote the use of eco-friendly vehicles in the country.

(v) In the budget of 2019-20, the Hon'ble Finance Minister announced for providing additional  income  tax  deduction  of  Rs  1.5  lakh  on  the  interest  paid  on  loans  taken  to purchase electric vehicles.

(vi) Ministry  of  Road  Transport  and  Highways  has  allowed  the  age  group  of  16-18 years to obtain Driving Licence to drive E-scooters.

(vii) Ministry of Road Transport and Highways has issued an advisory dated 17 th July, 2019 to all States and Union Territories to promote use of electric vehicles.

***********