Lok Sabha Question No. 869 (UNSTARRED), answered on 2023-02-07
Subject: Schemes for Promotion of Electric Vehicles
Ministry: HEAVY INDUSTRIES
Asked by: Ravindra Kushawaha, Ravi Kishan Shukla, Gajendra Singh Patel

## GOVERNMENT OF INDIA

## MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 869 ANSWERED ON 07.02.2023

## SCHEMES FOR PROMOTION OF ELECTRIC VEHICLES

## 869. SHRI RAVINDRA KUSHWAHA: SHRI RAVI KISHAN: SHRI GAJENDRA SINGH PATEL:

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

- (a) the details of various schemes being implemented by the Government to promote electric vehicles;
- (b) the details of the financial assistance being provided to promote electric vehicles in the State of Madhya Pradesh;
- (c) whether the Government is contemplating to increase the number of charging stations in the country;
- (d) the details of efforts being made in rural areas with regard to above scheme; and
- (e) whether the Government has formulated any policy to provide the facility of replacement of  batteries  at  the  charging  stations  itself  or  battery  swapping  policy  with  a  view  to promote electric vehicles and if so, the details thereof?

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

- (a): Sir, following three schemes are being implemented by the Ministry of Heavy Industries to promote electric vehicles in the country: -
- i. The Government notified Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) Scheme for a period of five years commencing from 1 st April,  2019  to  reduce  dependency  on  fossil  fuel  and  to  address  issues  of  vehicular emissions with a total budgetary support of Rs. 10,000 crore.  This phase aims to generate demand  by  way  of  supporting  7090  e-Buses,  5  lakh  e-3  Wheelers,  55000  e-4  Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers.
- ii. Production  Linked  Incentive  (PLI)  Scheme  for  Automotive  Sector:  The  Government  on 15 th   September, 2021 approved the PLI Scheme for Automotive Sector with a budgetary outlay of Rs. 25,938 crores. The  Production Linked Incentive (PLI) Scheme  for Automobile  and  Auto  components  proposes  financial  incentives  to  boost  domestic manufacturing of  Advanced Automotive  Technology products  and  attract  investments  in the automotive manufacturing value chain.  The scheme provides incentives up to 18% for electric vehicles.
- iii. PLI Scheme for Advanced Chemistry Cell (ACC): The Government on 12th May, 2021 approved PLI Scheme for manufacturing of ACC in the country with a budgetary outlay of Rs. 18,100 crore. The  scheme  envisages to establish a competitive ACC  battery manufacturing  set  up  in  the  country  for  50  GWh.  Additionally,  5  GWh  of  niche  ACC technologies is also covered under the Scheme.

(b): The FAME-India Scheme phase-II is being implemented on pan India basis including the State  of  Madhya  Pradesh.    Under  this  scheme,  incentives  are  provided  to  buyers  of  electric vehicles  in  the  form  of  an  upfront  reduction  in  the  purchase  price  of  electric  vehicles.    The incentive is linked to battery capacity i.e. Rs. 10,000/KWh for e-3W and e-4W with a cap 20% of the  cost  of  vehicle.    Further,  the  incentive/  subsidies  for  e-2W  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 w.e.f. 11 th June, 2021.

(c): Yes  Sir,  under  phase-II  of  FAME-India  Scheme,  Rs.  1000  Cr.  is  allocated  for  the development  of  charging  infrastructure  for  electric  vehicles  in  the  country.    The  Ministry  has sanctioned 2,877 electric vehicle charging stations in 68 cities across 25 states/UTs.  Further, 1576 charging stations across 9 Expressways and 16 Highways under phase-II of FAME India Scheme has also been sanctioned.

(d): The FAME-India Scheme phase-II is being implemented on pan India basis including rural areas of the country.

(e): Sir, NITI Aayog has uploaded a draft policy on their website for stakeholders' consultation for  implementing the battery swapping policy. With battery swapping  policy, faster adoption of EVs will take place which will increase public confidence in EVs.

Battery swapping is generally used for smaller vehicles such as 2Ws and 3Ws with smaller batteries  that  are  easier  to  swap,  compared  to  4  wheelers  and  e-buses,  although  solutions  are emerging for the latter segments as well.  Battery swapping offers three key advantages relative to charging: it is time, space, and cost efficient, provided each swappable battery is actively used.

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