Lok Sabha Question No. 2748 (UNSTARRED), answered on 2021-12-14
Subject: Extension of Phase-II of FAME Scheme
Ministry: HEAVY INDUSTRIES
Asked by: Achyutananda Samanta

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2748

ANSWERED ON 14.12.2021

## EXTENSION OF PHASE-II OF FAME SCHEME

## 2748.  SHRI ACHYUTANANDA SAMANTA:

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

- (a)  whether  the  Government  has  extended  the  Phase-II of the Faster  Adoption  and Manufacturing of (Hybrid &) Electric Vehicles (FAME) Scheme by two years till March 31, 2024, if so, the reasons therefor;
- (b) whether any of the targets set under the initial FAME Phase-II have been altered, if so, the details thereof; and
- (c) the details of the steps being taken by the Government to increase supply of raw materials for  battery  manufacturing  and  other  components,  thereby  reducing  dependency  on  imports and helping electric engines to attain price parity with internal combustion engines?

## ANSWER

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

- (a): Yes sir, the Government vide its notification has extended the scheme for a period of two years from 31 st March, 2022 to 31 st March, 2024, in view of Covid-19 Pandemic and based on inputs from stakeholders.
- (b): No, Sir, the phase-II of FAME India Scheme is being implemented for a period of 5 years w.e.f. 01 st 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.
- (c): Sir,  following  steps  have  been  taken  by  the  Government  to  reduce  dependency  on imports and helping electric engines to attain price parity with internal combustion engines: -
- i. 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. Government  has  also  approved  Production  Linked  Incentive(PLI)  scheme  on  15 th September, 2021 to encourage manufacturing of Advanced Automotive Technology (AAT) Products for Auto sector in India.

- 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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