Lok Sabha Question No. 2473 (UNSTARRED), answered on 2021-08-03
Subject: Incentives Schemes for Electric Vehicles
Ministry: HEAVY INDUSTRIES
Asked by: Sajda Ahmed

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2473

ANSWERED ON 03.08.2021

## INCENTIVES SCHEMES FOR ELECTRIC VEHICLES

## 2473. SHRIMATI SAJDA AHMED :

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

(a) whether the Government  has announced incentives schemes for electric vehicle manufactures;

(b) if so, the details thereof;

(c) the steps taken by the Government to bring down the cost of electric vehicle production and slash the cost of vehicles for the public; and

(d) the awareness initiatives taken by the Government for the uses of electric vehicle?

## ANSWER

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

(a) to (c): 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. 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 e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers.

Under  the  scheme,  incentives  are  provided  to  purchasers  of  electric  vehicles  in  the form of an upfront reduction in the purchase price of Electric Vehicles.  Subsidy/ Incentive is not  being  provided  to  electric  vehicle  manufacturers/  Original  Equipment  Manufacturers (OEMs) for manufacturing of electric vehicles in the country.

Further, following steps have been taken by the Government of India to address the challenges faced in adoption of electric mobility in the country: -

(i)  From 11th June, 2021 the demand incentive under Phase II of FAME India Scheme 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, thus enabling cost of Electric two wheelers at par with that of ICE two wheeler vehicles.

(ii)  The  Government  on  12th  May,  2021  approved  the  Production  Linked  Incentive  (PLI) Scheme for manufacturing of Advance Chemistry Cell (ACC) in the country in order to bring down prices of battery in the country. The drop in battery prices will result in cost reduction of Electric Vehicles.

(iii) 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%.

(iv)  Ministry  of  Road  Transport  &  Highways  (MoRTH)  announced  that  battery-operated vehicles will be given green license plates and be exempted from permit requirements.

(v) Ministry of Road Transport & Highways (MoRTH) issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.

(d): Sir, as part of Phase-II of FAME-India Scheme, there is a IEC (Information, Education & Communication) activities  component.  Various  IEC  program  are  conducted  for  creating consumer awareness and promotion of the scheme, on a need basis, through education and training,  publicity,  organization  of  business  meets/seminars/conferences/symposia  etc.  by Ministry  of  Heavy  Industries,  Industry  Association  and  testing  agencies  like  Automotive Research  Association  of  India ( ARAI ), International  Centre  for  Automotive  Technology ( ICAT ) etc.

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