Lok Sabha Question No. 298 (UNSTARRED), answered on 2022-07-19
Subject: Manufacturing of Electric and Battery Vehicles
Ministry: HEAVY INDUSTRIES
Asked by: Nishikant  Dubey, Manoj Kishorbhai Kotak, Raksha Nikhil Khadse

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 298

ANSWERED ON 19.07.2022

## MANUFACTURING OF ELECTRIC AND BATTERY VEHICLES

## 298. DR. NISHIKANT DUBEY: SHRIMATI RAKSHA NIKHIL KHADSE: SHRI MANOJ KOTAK:

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

(a) whether Government is promoting the manufacturing and use of electric and battery ecofriendly vehicles in the country and if so, details thereof including the Electric Vehicles (EVs) registered during the last three years, year-wise;

(b) whether the Government is providing incentives under Production Linked Incentives (PLI) Scheme  for  the  manufacturers  of  EVs  and  battery  operated  vehicles  and  its  equipment  to encourage production of EVs and incentives to buyers of these vehicles in purchase price of EVs and if so, the details thereof during the last three years, year-wise; and

(c) whether the Government proposes to convert all the vehicles in the country into electric and battery eco friendly vehicles and if so, the details thereof?

## ANSWER

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

(a) & (b): Yes Sir, in order to promote manufacturing and usage of electric and battery eco-friendly  vehicles  in  the  country,  the  Government  launched  the  Faster  Adoption  and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015 on PAN India basis with an aim to reduce dependency on fossil fuel and to address issues of vehicular emissions.  At present, 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.

Under the scheme, 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  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.  Since beginning of the scheme i.e. 01 st April, 2019, total 4.72 lakh EVs (e-2W, e-3W and e-4W) with demand incentive of about Rs. 1908.00 Cr. have been supported under the scheme as on 14 th July, 2022.

As  per  e-vahan  portal,  Ministry  of  Road  Transport  and  Highways,  the  details  of electric vehicles registered in the country over the last three years is as under:

|   Sl. No. | Financial Year   | No. of electric vehicles   |
|-----------|------------------|----------------------------|
|         1 | 2019-20          | 1,68,317                   |
|         2 | 2020-21          | 1,34,853                   |
|         3 | 2021-22          | 4,29,477                   |

Further, following steps have been taken by the Government for adoption of electric vehicles in the country:

- i. The demand incentive for electric two wheelers under FAME India Scheme Phase-II 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  12 th 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.
7. (c): No such proposal is under consideration in the Ministry of Heavy Industries.

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