Lok Sabha Question No. 1185 (UNSTARRED), answered on 2021-02-09
Subject: Incentives for Setting up of Electric Automotive Industries
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: L.S. Tejasvi Surya, Prathap Simha

## GOVERNMENT OF INDIA

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

## LOK SABHA UNSTARRED QUESTION NO. 1185

ANSWERED ON 09.02.2021

## INCENTIVES FOR SETTING UP OF ELECTRIC AUTOMOTIVE INDUSTRIES

## 1185. SHRI L.S. TEJASVI SURYA: SHRI PRATHAP SIMHA:

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

(a) whether the Government proposes to provide additional sops or incentives for the setting up of electric automotive industries in the country and if so, the details of such incentives;

(b)  the  details  of  the  existing  incentives  or  policies  to  assist  electric  car  manufacturers  and battery producing majors in setting up domestic production facilities in the country; and

(c)  whether  the  Government  is  providing  any  advances  or  incentives  in  the  wake  of  the COVID-19  pandemic  for  new  manufacturers  and  available  incentives  for  electric  car  and battery manufacturers and if so, the details thereof?

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

(a)  to  (c): Sir,  the  Department  of  Heavy  Industry is  administering the Faster Adoption and Manufacturing  of  (Hybrid  &)  Electric  Vehicles  in  India  (FAME  India)  Scheme  since  01 st April, 2015 to promote adoption of electric/ hybrid vehicles (xEVs) in India with an aim to reduce  dependence  on  fossil  fuel.    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, the Union Cabinet on November 11, 2020 has given its approval to introduce the  Production  Linked  Incentive  (PLI)  scheme  to  10  specified  key  Sectors  including Automobile & Auto Components sector and Advance Chemistry Cell (ACC) Battery for a period  of  five  years  with  a  financial  allocation  of  Rs.  1,45,980  crore  to  enhance  India's Manufacturing Capabilities.

The automotive industry is a major economic contributor in India.  The PLI scheme will make the Indian Automotive Industry more competitive and will enhance globalization of the  Indian  automotive  sector.    ACC  battery  manufacturing  represents  one  of  the  largest economic opportunities of the twenty-first century for several global growth sectors, such as consumer  electronics,  electric  vehicles,  and  renewable  energy.    The  PLI  scheme  for  ACC battery will incentivize large domestic and international players in establishing a competitive ACC battery set-up in the country.

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