Lok Sabha Question No. 959 (UNSTARRED), answered on 2022-02-08
Subject: Promotion of Electric Vehicles
Ministry: HEAVY INDUSTRIES
Asked by: Poonamben Hematbhai Maadam, Ritesh Pandey

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 959

ANSWERED ON 08.02.2022

## PROMOTION OF ELECTRIC VEHICLES

## 959. SHRIMATI POONAMBEN MAADAM: SHRI RITESH PANDEY:

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

- (a) the  measures  taken/proposed  to  be  taken  by  the  Government  to  promote  the manufacturing and use of electric vehicles in the country;
- (b) whether any time limit has been fixed or is proposed to be fixed by the Government for converting all the vehicles used in the country into electric vehicles and if so, the details thereof;
- (c) the budgetary allocation for promoting the electric vehicles for this financial year;
- (d) the number of vehicles in the Central Government offices targeted/to be targeted for conversion into electric vehicles during 2020-21 along with the number of electric vehicles targeted/to be targeted for use in such offices during the said period; and
- (e) whether  the  Government  proposes  to  provide  incentives/subsidies  to  the  buyer  and manufacturers of electric vehicles and if so, the details thereof?

## ANSWER

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

- (a): Sir,  the  Ministry  of  Heavy  Industries  formulated  a  Scheme  Faster  Adoption  and Manufacturing of (Hybrid &) Electric  Vehicles  in  India  (FAME  India)  Scheme  in  2015  to promote adoption of electric/ hybrid vehicles (xEVs) in the country.  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.

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  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.
6. (b): No Such proposal is under consideration in the Ministry of Heavy Industries.

( c): Sir, the details of fund allocation under Phase-II of Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme for promoting the electric vehicles in the financial year 2021-22 is as under:

|         |   Fund allocation (Budget Estimate) |   Figure are in Rs. Crore |
|---------|-------------------------------------|---------------------------|
| 2021-22 |                              756.66 |                       800 |

(d): No Such proposal is under consideration in the Ministry of Heavy Industries.

(e): Yes Sir, under Phase-II of FAME-India Scheme, incentives are provided to buyers of electric vehicles in the form of an upfront reduction in the purchase price of electric vehicles. Under this scheme, the incentive amount is directly proportional to the battery capacity of the EV.  The incentive amount is INR 10,000 per kWh of battery capacity for e-3W and e-4W segments, and INR 20,000 per kWh for buses.  The maximum incentive is also capped at 40% of the ex-showroom price for e-buses and 20% for e-3W and e-4W segments.  Further, w.e.f. 11 th June,  2021,  demand  incentive  for  e-2W  is  increased  to  Rs.  15,000/KWh  from  Rs. 10,000/KWh  with  a  cap  of  40%  cost  of  vehicles.    Also,  battery  electric  vehicles  using Advanced Chemistry Cell (ACC) batteries are also eligible for incentive upto 16% under PLI scheme for Automobiles and Auto Components.

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