Lok Sabha Question No. 2076 (UNSTARRED), answered on 2022-03-15
Subject: Electric Vehicle Manufacturing Centre/Hub
Ministry: HEAVY INDUSTRIES
Asked by: Mohanbhai Kalyanji Kundariya, Dipsinh Shankarsinh Rathod, P. C. Mohan

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 2076

ANSWERED ON 15.03.2022

## ELECTRIC VEHICLE MANUFACTURING CENTRE/HUB

## †2076. SHRI MOHANBHAI KALYANJI KUNDARIYA: SHRI P.C. MOHAN: SHRI DIPSINH SHANKARSINH RATHOD:

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

- (a) whether India will become electric vehicle manufacturing centre (hub) in the coming five years;
- (b) if so, the details thereof;
- (c) the main issues in India in the field of electric vehicles;
- (d) the scope of changed opportunities of business for Indian Industrial Sector; and
- (e) whether these steps help in economic development of the country and the job creation, if so, the details thereof?

## ANSWER

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

- (a) & (e): Sir, to enhance India's Manufacturing capabilities and to help in the economic development of the country, the union cabinet on 12 th May,  2021  approved the  Production Linked Incentive (PLI) Scheme for setting up manufacturing facilities for Advance Chemistry Cell (ACC), Battery Storage in India, with a total manufacturing capacity of 50 Giga Watt Hour  (GWh)  with  an  outlay  of  Rs.  18,100  crores  over  a  period  of  5  years.    Also,  the Government  approved  the  Production  Linked  Incentive  (PLI)  Scheme  for  Automobile  and Auto  Components  Industry  in  India  for  enhancing  India's  Manufacturing  Capabilities  for Advanced  Automotive  Technology  (AAT)  Products  for  Auto  sector  including  electric vehicles with a budgetary outlay of Rs. 25,938 crores over a period of five years.

Further, Ministry of Heavy Industries is administering phase-II of Faster Adoption and Manufacturing  of  (Hybrid  &)  Electric  Vehicles  to  promote  adoption  of  electric/  hybrid vehicles (xEVs) in India 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.  Electric vehicles are being supported by the way of demand incentives under FAME India  Scheme phase  II  to  reduce  the  cost  difference  between  the  electric  vehicles  and  ICE vehicles .

Further, following initiatives have also been taken up by the Government of India for promotion of electric vehicles in the country -

- i. The demand incentive under FAME-II scheme has been increased to Rs. 15,000/KWh from  Rs.  10,000/KWh  with  an  increase  in  cap  from  20%  to  40%  of  cost  of  vehicle,  thus enabling cost of electric two wheelers to be at par with ICE two wheeler vehicle.
- ii. 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%.
- iii. Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.
- iv. MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.

******