Lok Sabha Question No. 1592 (UNSTARRED), answered on 2021-12-07
Subject: Electric Vehicle Policy
Ministry: HEAVY INDUSTRIES
Asked by: Hibi Eden

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO.1592

ANSWERED ON 07.12.2021

## ELECTRIC VEHICLE POLICY

## 1592. SHRI HIBI EDEN:

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

- (a) whether there exists an Electric Vehicle Policy, if so, the details thereof;
- (b) whether the Government plans to promote electric vehicles by giving tax exemptions, if so, the details including Income Tax exemptions;
- (c) whether there is any plans to promote electric vehicles manufacturing in the country, if so, the details thereof;
- (d) whether  there  is  any  plan  to  promote  EV  charging  station  buildings  at  large  scale along major highways to facilitate smooth interstate travel using EV, if so, the details thereof;
- (e) whether  the  Government  plans  to  promote  EV  charging  stations  by  giving  tax exemptions, if so, the details thereof;
- (f) whether there is any plan to promote EV battery production in the country at highly affordable rates, if so, the details thereof; and
- (g) whether battery swapping transform urban mobility and would catalyze EV adoption, if so, the Government/PSU initiatives in this regard?

## ANSWER

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

(a) to (e): Yes Sir, the Ministry of Heavy Industries formulated a Scheme namely 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.  The Ministry had sanctioned 520 Charging Stations/ Infrastructure under the Phase-I of FAME India Scheme.  Further, under phase-II of FAMEIndia Scheme, Rs. 1000 Cr. is allocated for the development of charging infrastructure.  This Ministry  has  sanctioned  2,877  Electric  Vehicle  Charging  Stations  in  68  cities  across  25 States/UTs and 1576 charging stations across 9 Expressways and 16 Highways under Phase II of FAME India Scheme.

Further, following initiatives have also been taken up by the Government of India for promotion of electric vehicles in the country-

(i) 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%.

(ii) Ministry of Power released a notification on charging infrastructure standards permitting private charging at residences and offices.

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

(iv) MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.

(v) Ministry of Housing & Urban Affairs (MoHUA) amended the Model Building Byelaws 2016 to establish charging stations and infrastructure in private and commercial buildings.

(vi) 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.

(f): Yes, Sir. The Government on 12 th May, 2021 approved a Production Linked Incentive (PLI) Scheme for manufacturing of Advance Chemistry Cell (ACC) in the country.  The total outlay of the scheme is Rs. 18,100 Crore for a period of 5 years.  The scheme envisages to establish  a  competitive  ACC  battery  manufacturing  set  up  in  the  country  (50  GWh). Additionally,  5GWh  of  niche  ACC  technologies  is  also  covered  under  the  Scheme.  The scheme  proposes  a  production  linked  subsidy  based  on  applicable  subsidy  per  KWh  and percentage of value addition achieved on actual sales made by the manufacturers who set up production units. This scheme will facilitate reduction of import dependence of ACC battery and will reduce prices of batteries used in electric vehicles.

(g): Sir,  to  facilitate  battery  swapping  as  a  feasible  solution  for  commercial  electric vehicles fleets, especially in the e-2W and e-3W segments, the Ministry of Road Transport and Highways (MoRTH) has allowed the sale and registration of EVs without batteries.

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