Lok Sabha Question No. 2664 (UNSTARRED), answered on 2022-08-02
Subject: Promotion and Use of Electric Vehicles
Ministry: HEAVY INDUSTRIES
Asked by: Kanakmal Katara

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2664

ANSWERED ON 02.08.2022

## PROMOTION AND USE OF ELECTRIC VEHICLES

## 2664. SHRI KANAKMAL KATARA:

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

- (a) the steps taken by the Government to promote the use of electric vehicles in Rajasthan including  Banswara  -  Durgapur  Parliamentary  Constituency  having  a  tribal  dominated population;
- (b) whether the Government is insisting the electric vehicle manufacturing companies to reduce the prices and if so, the details thereof regarding the points on which talks were held; and
- (c) whether the Government proposes to make electric vehicles available on low cost on the lines of Tata Nano car or provide any special discount and if so, the details thereof?

## ANSWER

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

(a)  to  (c): Sir,  in  order  to  promote  manufacturing  and  usage  of  electric  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  (including  Rajasthan, Banswara  -  Durgapur  Parliamentary  Constituency)  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.    01st  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 e3  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 been taken by the Government for adoption of 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 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. Electric Vehicles are also incentivised 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.

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