Lok Sabha Question No. 167 (UNSTARRED), answered on 2021-02-02
Subject: Strategic Push for Electric Vehicles Sector
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Adala Prabhakara Reddy

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

## LOK SABHA UNSTARRED QUESTION NO. 167

ANSWERED ON 02.02.2021

## STRATEGIC PUSH FOR ELECTRIC VEHICLES SECTOR

## 167. SHRI ADALA PRABHAKARA REDDY:

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

- (a) the steps taken by the Government to accelerate the demand for electric vehicles among the consumers in the country during the last two years;
- (b) the main reasons as to why the consumers are not shifting to 4 wheeler electric vehicles in the country; and
- (c) the details of the States which have rolled out an electric vehicle policy till date?

## ANSWER

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

(a): Sir,  the  Department  of  Heavy  Industry  (DHI)  formulated  a  scheme  namely  Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in  India (FAME  India Scheme) Scheme in March 2015 to accelerate the demand for electric vehicles among the consumers in the country. Phase-I of the Scheme was extended upto 31 st March 2019. 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 focuses 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, following steps have also been taken up by the Government of India to promote the uses of electric vehicles among the consumers in the country: -

- (i) GST on electric vehicles  has  been  reduced  from  12%  rate  to  5%;  GST  rate  on  chargers/ charging stations for electric vehicles has been reduced from 18% to 5%.
- (ii) Ministry  of  Power  has  allowed  sale  of  electricity  as  'service'  for  charging  of  electric vehicles. This would provide a huge incentive to attract investments into charging infrastructure.
- (iii) The Government, vide S.O. 5333(E) dated 18th October, 2018, has also granted exemption to  the  Battery  Operated  Transport  Vehicles  and  Transport  Vehicles  running  on  Ethanol  and Methanol fuels from the requirements of permit.

(iv) In the budget of 2019-20, the Hon'ble Finance Minister announced provision of additional income  tax  deduction  of  Rs  1.5  lakh  on  the  interest  paid  on  loans  taken  to  purchase  electric vehicles.

(v) In  order  to  promote  electric  vehicles,  the  Government  has  notified  for  retro-fitment  of hybrid electric system or electric kit to vehicles and has specified the type approval procedure of electric hybrid vehicles.

(vi) The Ministry of Road Transport & Highways has notified certain specifications for the grant of licence to age group of 16-18 years to drive gearless E scooters/ Bikes upto 4.0 KW.

(vii) Ministry of Housing and Urban Affairs has made amendment in the Urban and Regional Development  Plans  Formulation  and  Implementation  (URDPFI)  guidelines  to  provide  for electric vehicle charging stations in private and commercial buildings.

(b): The  upfront  cost  of  four  wheeler  electric  vehicles  is  higher  than  the  Internal  Combustion Engine (ICE)vehicle.  However, the operational  cost  of  four  wheeler  electric  vehicles  is  lower than the ICE vehicles. Therefore, the overall life time cost of the four wheeler electric vehiclesis lower than the ICE vehicles. Further, four wheeler electric vehicles are being supported by the way of demand incentives under FAME India Phase II to reduce the cost difference between the electric vehicles and ICE vehicles.

(c): Following  States  have  rolled  out  Electric  vehicle  policy  to  promote  the  use  of  electric vehicles: -

1. Delhi, 2. Tamil Nadu, 3. Uttarakhand, 4. Kerala, 5. Maharashtra, 6. Andhra Pradesh, 7. Uttar Pradesh, 8. Telangana, 9. Karnataka; and 10. Madhya Pradesh

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