Lok Sabha Question No. 68 (STARRED), answered on 2023-02-07
Subject: Promotion of Electric Vehicles
Ministry: HEAVY INDUSTRIES
Asked by: Shankar Lalwani

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA STARRED QUESTION NO. 68 ANSWERED ON 07.02.2023

## PROMOTION OF ELECTRIC VEHICLES

## *68. SHRI SHANKAR LALWANI:

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

- (a) whether  the  Government  has  taken  any  steps  to  promote  the  manufacturing  of  electric vehicles to reduce the increasing pollution;
- (b) if so, the details thereof;
- (c) whether the Government has formulated any scheme to provide subsidy or loan at lowinterest rate on electric vehicles to promote the sale of the said vehicles;
- (d) if so, the details thereof; and
- (e) the ratio of manufacturing and sale of these vehicles during the last three years?

## ANSWER

## THE MINISTER OF HEAVY INDUSTRIES (DR. MAHENDRA NATH PANDEY)

- (a) to (e): A statement is laid on the Table of the House.

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## STATEMENT

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA STARRED QUESTION NO. 68 FOR 07.02.2023 ASKED BY SHRI SHANKAR LALWANI REGARDING 'PROMOTION OF ELECTRIC VEHICLES'.

(a) to (d): Yes  Sir,  the  Ministry  of  Heavy  Industries  has  launched  three  schemes  with  an objective to boost demand of Electric Vehicles (EVs) and to incentivise manufacturing of EVs & Advanced Automotive Components.  Their details are as under:-

- i. The  Government  notified  Faster  Adoption  and  Manufacturing  of  Electric  Vehicles  in India Phase II (FAME India Phase II) Scheme with a budgetary outlay of ₹ 10,000 crore for  a  period  of  five  years  commencing from 1 st April,  2019  to  promote hybrid/ electric technology  in  transportation  so  as  to  reduce  dependency  on  fossil  fuels  and  to  address issues  of  vehicular  emissions.    As  far  as  e-Buses,  electric  three  wheelers  (e-3W)  and electric  four  wheelers  (e-4W)  are  concerned,  the  scheme  provides  subsidy  to  those vehicles which are used in public transportation or for commercial use.  For electric two wheelers (e-2W), privately owned vehicles are also provided with subsidy.  The details of demand  incentive/  subsidy  provided  under  Phase-II  of  FAME  India  Scheme  is  at ANNEXURE I.

FAME  II  intends  to  support  7,090  e-Buses,  5  lakh  e-3  Wheelers,  55,000  e-4 Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers.  Further details about the FAME II India scheme can be seen on the website at https://heavyindustries.gov.in/UserView/index?mid=1378 .

- ii. Production Linked Incentive (PLI) Scheme for Automobile and Auto component industry with a budgetary outlay of ₹ 25,938 crore, provides financial incentives to boost domestic manufacturing of Advanced Automotive Technology products including electric vehicles and  their  components.    The  scheme  provides  incentive  up  to  18%  of  eligible  sales  of electric vehicles and their components.  Further details about the scheme can be seen at https://heavyindustries.gov.in/UserView/index?mid=2482 .
- iii. Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC): The Government has approved PLI Scheme for manufacturing of ACC in the country with a budgetary outlay of ₹ 18,100 crore.  The scheme incentivises the establishment of Giga scale ACC manufacturing facilities in the country for 50 Giga Watt hour (GWh).  These ACCs will be used in batteries which are aimed to promote the widespread adoption of EVs. Further details may be seen at https://heavyindustries.gov.in/UserView/ index?mid=2487 .
3. (e): Sir, the information regarding manufacture of electric vehicles is not maintained by the Ministry.  The data regarding the number of electric vehicles sold in India (as per information from Ministry of Road Transport and Highways, MoRTH), is attached as per Annexure II .

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ANNEXURE REFERRED IN LOK SABHA STARRED QUESTION NO. 68 PART (a) TO (d) FOR 07.02.2023 ASKED BY SHRI SHANKAR LALWANI REGARDING 'PROMOTION OF ELECTRIC VEHICLES'.

## ANNEXURE I

| Category of vehicle                                        | E-Buses                               | e-2W                                        | e-3W                            | e-4W Cars                                  |
|------------------------------------------------------------|---------------------------------------|---------------------------------------------|---------------------------------|--------------------------------------------|
| EV Technology                                              | Electric                              | Electric                                    | Electric                        | Strong Hybrid, Plug in Hybrid and Electric |
| Used for                                                   | Public Transport                      | Private Use Commercial Use Shared transport | Commercial Use Shared transport | Commercial Use Shared transport            |
| Subsidy/Incentives Rs. 20,000 per KWH                      |                                       | Rs. 15,000 Per KWH                          |                                 | 10,000 PerKWH                              |
| Maximum Incentive provided on % of the cost of the vehicle | 40% or Rs. 55 lakh whichever is lower | 40%                                         |                                 | 20%                                        |

REFERRED IN LOK SABHA STARRED QUESTION NO. 68 PART (e) FOR 07.02.2023 ASKED BY SHRI SHANKAR LALWANI REGARDING 'PROMOTION OF ELECTRIC VEHICLES'.

## ANNEXURE II

(Units in Number)

|                           |            | Domestic Sales (MoRTH*)   | Domestic Sales (MoRTH*)   | Domestic Sales (MoRTH*)   |
|---------------------------|------------|---------------------------|---------------------------|---------------------------|
| Category                  | Fuel Types | 2019-20                   | 2020-21                   | 2021-22                   |
| Passenger Vehicles (e-4W) | EVs        | 6,000                     | 5,000                     | 19,000                    |
| Three Wheelers (e-3W)     | EVs        | 14,000                    | 88,000                    | 1,78,000                  |
| Two Wheelers (e-2W)       | EVs        | 25,000                    | 41,000                    | 2,31,000                  |

* MoRTH: Ministry of Road Transport and Highways

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