Lok Sabha Question No. 81 (UNSTARRED), answered on 2021-02-02
Subject: Electric Vehicles
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Jayant Sinha

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

## LOK SABHA UNSTARRED QUESTION NO. 81

ANSWERED ON 02.02.2021

## ELECTRIC VEHICLES

## 81. SHRI JAYANT SINHA:

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

(a) the steps taken by the Government to encourage the Indian electrical industry to adopt newer technologies and innovation aimed at future energy transition;

(b) the current market share of electric vehicles in the domestic market; and

(c) whether the Government has undertaken any study to analyze how such market share may transform in the next decade and if so, the details thereof?

## ANSWER

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

(a): Government  of  India  has  been  promoting  electric  mobility  in  the  country.  The  Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in  India (FAME  India) Scheme was launched under the National Electric Mobility Mission Plan (NEMMP) 2020 in March, 2015 to  promote adoption of electric/ hybrid vehicles (xEVs). Phase-I of the  Scheme was extended upto 31st March 2019. At present, Phase-II of FAME India Scheme is being implemented for a period of 3 years w.e.f. 01 st April, 2019 with a total budgetary support of Rs. 10,000 crore. This phase  focusses  on  supporting  electrification  of  public  &  shared  transportation  and  aims  to support,  through  subsidies,  approx.  7000  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.

Further, following steps have also been taken up by the Government of India to promote the uses of electric vehicles among the consumers in the country: -

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

(v) In  order  to  promote  electric  vehicles,  the  Government  has  notified  for  retro-fitment  of hybrid electric system or electric kit to vehicles and has specified the type approval procedure of electric hybrid vehicles.

(vi) The Government has notified that the registration mark for Battery Operated Vehicles is to be on a plate with green background.

(vii) The  Ministry  of  Road  Transport  &  Highways  has  notified  certain  specifications  for  the grant of licence to age group of 16-18 years to drive gearless E scooters/ Bikes upto 4.0 KW.

(viii) The  Indian  Space  Research  Organisation  (ISRO)  has  commercialized  indigenously developed  lithium  ion  battery  technology  and  has  selected  14  companies  for  transfer  of technology.

(ix) The  NITI  Aayog  has  taken  an  initiative  to  provide  a  Model  Concessionaire  Agreement (MCA)  document  for  introducing  Electric-Bus  Fleet  in  Cities  for  Public  Transportation  on Public-Private Partnership (PPP) mode on Operational Expenditure (per km basis) Model rather than paying upfront capital cost.

(x) Ministry of Housing and Urban Affairs has made amendment in the Urban and Regional Development  Plans  Formulation  and  Implementation  (URDPFI)  guidelines  to  provide  for electric vehicle charging stations in private and commercial buildings.

(b): As per the information received from SIAM, In FY 2019-20, number of electric vehicles registered  in  the  country  were  about  1.7  lakhs  as  against  207.2  lakhs  ICE  vehicles  i.e.  about 0.8%.

(c): As per information received from SIAM, 40% electrification of vehicles is expected by 2030.

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