Lok Sabha Question No. 2173 (UNSTARRED), answered on 2022-12-20
Subject: PMP to Promote Manufacturing of EVs
Ministry: HEAVY INDUSTRIES
Asked by: Sumedhanand Saraswati, Balak Nath, Ranjeeta Koli, Manoj Rajoria

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2173

ANSWERED ON 20.12.2022

## PMP TO PROMOTE MANUFACTURING OF EVs

## 2173.  SHRI SUMEDHANAND SARASWATI:

SHRI BALAK NATH:

SHRIMATI RANJEETA KOLI:

DR. MANOJ RAJORIA:

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

- (a) whether the Government has prepared any Phased Manufacturing Programme (PMP) to promote manufacturing of Electric Vehicles (EVs);
- (b) if so, the details thereof;
- (c) the details of the leading automobile manufacturers who have shown interest in the electric vehicles manufacturing in the country including Rajasthan;
- (d) the amount of subsidy provided by the Government to said companies for electric vehicles manufacturing or whether any such initiative has been taken, so that electric vehicles could be promoted; and
- (e) if so, the details thereof?

## ANSWER

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

- (a) & (b): Yes, Sir, under FAME India Scheme Phase-II, Phased Manufacturing Programme (PMP) has been introduced with the objective of domestic manufacturing of electrical vehicles, its assemblies/sub-assemblies and parts/sub-parts thereby increasing the domestic value addition.
- (c) to (e): The  details  of  Original  Equipment  Manufacturers  (OEMs)  from  Rajasthan registered under FAME India Scheme Phase-II and the demand incentive/subsidy disbursed as on 15.12.2022 are as under:

|   Name of Manufacturers | Name of Manufacturers             | Location of Manufacturing Plant   | Demand Incentive Amount under FAME- II (in Rs.)   |
|-------------------------|-----------------------------------|-----------------------------------|---------------------------------------------------|
|                       1 | Okinawa Auto Tech Pvt. Ltd.       | Rajasthan                         | 128,60,98,405.00                                  |
|                       2 | Tunwal E-motors Pvt. Ltd          | Rajasthan                         | 0                                                 |
|                       3 | Twenty Two Motors Private Limited | Rajasthan                         | 5,22,97,500.00                                    |
|                       4 | Saera Electric Auto Pvt Ltd       | Rajasthan                         | 8,32,68,724.72                                    |

Further, following steps have been taken by the Government to promote electric vehicles in the country:

i. The demand incentive for electric two wheelers has been increased to Rs. 15,000/KWh from Rs. 10,000/KWh along with an increase in cap from 20% to 40% of the cost of electric vehicle with effect from 11th June, 2021.

- ii. The  Government  on  12th  May,  2021  approved  a  Production  Linked  Incentive  (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country which will lead to lowering the prices of battery in the country along with a consequent drop in the cost of electric vehicles.  Further, the PLI Scheme for Automobile and Auto Component was notified on 23 rd September, 2021 also has the provision for incentivizing Electric Vehicles.

iii. 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%.

iv. Keeping in view the need for promoting electric mobility and alternate fuels, the Ministry of Road Transport and Highways, vide notification issued on October 18, 2018, has exempted Battery Operated Vehicles, from the requirement of permit for carrying passengers or goods.

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