Lok Sabha Question No. 2192 (UNSTARRED), answered on 2023-03-14
Subject: Tax Reduction on EVs
Ministry: HEAVY INDUSTRIES
Asked by: Andimuthu Raja, A. Ganeshamurthi

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2192 ANSWERED ON 14.03.2023

## TAX REDUCTION ON EVs

## 2192. SHRI A. RAJA: SHRI A. GANESHAMURTHI:

Will the Minister of HEAVY INDUSTRIES भारी उद्योग मंत्री be pleased to state:

- (a) the  details  of  policies  of  the  Government  for  incentivising  manufacture  of  Electric Vehicles (EVs) in the country;
- (b) whether  battery  manufacturing  capabilities  and  charging  infrastructure  facilities  have improved during the last three years;
- (c) if so, the details thereof; and
- (d) whether tax reduction  on  EVs,  exemption  on  stamp  duty  on  purchase  or  lease  of  land obtained from the Government for the manufacturer is allowed so that people can go for EVs rather than petrol/ diesel vehicles and if so, the details thereof?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI KRISHAN PAL GURJAR)

- (a): Sir, the Ministry of Heavy Industries has given incentives to buyers and manufacturers of electric vehicles through following three schemes:
- i. Faster  Adoption  and  Manufacturing  of  Hybrid  and  Electric  Vehicles  in  India  (FAME India):  The  Government notified Phase-II  of  FAME  India Scheme  for  a period of five years  commencing  from  1 st April,  2019  with  a  total  budgetary  support  of  Rs.  10,000 crore.  Under FAME-India Scheme phase-II, incentives are provided to buyers of electric vehicles  in  the  form  of  an  upfront  reduction  in  the  purchase  price  of  electric  vehicles. The incentive is linked to battery capacity i.e. Rs. 10,000/KWh for e-3W and e-4W with a cap  20%  of  the  cost  of  vehicle.    Further,  the  incentive/  subsidies  for  e-2W  has  been increased to Rs. 15,000/KWh from Rs. 10,000/KWh with an increase in cap from 20% to 40% of the cost of vehicle w.e.f. 11 th June, 2021.
- ii. Production Linked Incentive (PLI) Scheme for Automotive Sector: The Government on 15 th Sep., 2021 approved the PLI Scheme for Automotive Sector with a budgetary outlay of Rs. 25,938 crores to support domestic manufacturing of vehicles.  Electric vehicles are covered under this PLI scheme.
- iii. PLI Scheme for Advanced Chemistry Cell (ACC): The Government on 12 th  May, 2021 approved PLI Scheme for manufacturing of ACC in the country with a budgetary outlay of  Rs.  18,100  crore.    The  scheme  envisages  to  establish  a  competitive  ACC  battery manufacturing set  up  in  the  country  for  30  GWh.    Additionally,  5GWh  of  niche  ACC technologies is also covered under the Scheme.

(b) & (c): Yes,  sir.  Under  PLI  ACC  Scheme,  three  entities  have  been  awarded  the  ACC capacities i.e. Rajesh Exports Limited - 5 GWh, Ola Electric Mobility Private Limited - 20 GWh & Reliance New Energy Solar Limited - 5 GWh.

Further, the Ministry of Heavy Industries has sanctioned 2,877 electric vehicle charging stations in 68 cities across 25 states/UTs and 1576 charging stations across 9 Expressways and 16 Highways under phase-II of FAME India Scheme has also been sanctioned.

(d): Sir, GST  on  electric  vehicles  has  been  reduced  from  12%  to  5%;  GST  on  chargers/ charging stations for electric vehicles has been reduced from 18% to 5%.

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