Lok Sabha Question No. 2553 (UNSTARRED), answered on 2022-08-02
Subject: Promotion of Electric Vehicles
Ministry: HEAVY INDUSTRIES
Asked by: Keshari Devi Patel

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2553

ANSWERED ON 02.08.2022

## PROMOTION OF ELECTRIC VEHICLES

## 2553.  SHRIMATI KESHARI DEVI PATEL :

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

- (a) whether  the  Government  proposes  to  promote  the  use  of  electric  vehicles  in  Uttar Pradesh including Prayagraj;
- (b) the details and the number of charging stations set up/proposed to be set up in Uttar Pradesh, district- wise including Prayagraj;
- (c) whether the Government has held talks with the manufacturing companies to fix the prices in view of the demand and supply of electric vehicles and if so, the details thereof;
- (d) whether the Government is taking any steps to bring the prices of above said vehicles in the budget of middle class families; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

(a) to (b): Sir, the Ministry of Heavy Industries is administering phase-II of Faster Adoption and  Manufacturing  of  (Hybrid  &)  Electric  Vehicles  on  pan  India  basis  (including  Uttar Pradesh) to promote adoption of electric/ hybrid vehicles (xEVs) in India for a period of 5 years w.e.f. 01st April, 2019 with a total budgetary support of Rs. 10,000 crores.  This phase focusses on supporting electrification of public & shared transportation and aims to support, through subsidies, 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 is also supported to address range anxiety among users of electric vehicles.

The Ministry of Heavy Industries has sanctioned 37 charging stations to Lucknow; 25 charging stations each to Varanasi, Allahabad, Kanpur; 55 charging stations to Noida, 10 charging  stations  each  to  Aligarh,  Saharanpur,  Bareilly  and  Jhansi  in  the  State  of  Uttar Pradesh under phase-II of FAME India Scheme.

- (c): Sir, no such proposal is under consideration in the Ministry of Heavy Industries.

(d) & (e): Sir, in order to reduce the price of electric vehicles and promotion of adoption of electric vehicles, following steps have been taken by the Government in the country:

- i. Under FAME India Scheme Phase-II, the demand incentive for electric two wheelers 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 from 11 th June, 2021, thus enabling cost of Electric two wheelers at par with that of ICE two wheeler vehicles.
- ii. The Government on 12th May, 2021 approved a Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country in order to bring down prices of battery in the country. Drop in battery price will result in cost reduction of electric vehicles.
- iii. Electric  Vehicles  are  covered  under  Production  Linked  Incentive  (PLI)  scheme  for Automobile and Auto Components, which was approved on 15 th  September 2021 with a budgetary outlay of Rs. 25,938 crore for a period of five years.
- iv. 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%.
- v. Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.
- vi. MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.

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