Lok Sabha Question No. 120 (UNSTARRED), answered on 2021-02-02
Subject: National Electric Mobility Mission Plan
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Pragya Singh Thakur, Subrata Pathak

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION NO. 120

ANSWERED ON 02.02.2021

## NATIONAL ELECTRIC MOBILITY MISSION PLAN

## 120. SADHVI PRAGYA SINGH THAKUR: SHRI SUBRAT PATHAK:

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES भारी उद्योग एवं ऱोक उद्यम मंत्री be pleased to state:

(a) the manner in which the Government is committed to its works under the National Electric Mobility Mission Plan (NEMMP) 2020 and the details of the plan of the Government to set up charging sub-stations in all the States for e-vehicles;

- (b) the details of the ambitious target for selling six to seven million hybrid and electric vehicles each year after 2022;
- (c) the details of various provisions being made by the Government in this regard; and
- (d) the manner in which FAME India scheme is providing assistance to the Government under the same?

## ANSWER

## THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI PRAKASH JAVADEKAR)

(a) to (d): The National Electric Mobility Mission Plan (NEMMP) 2020 is a National Mission document providing the vision and the roadmap for the faster adoption of electric vehicles and their manufacturing in the country.

As part of the NEMMP 2020, Department of Heavy Industry formulated a Scheme namely Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles India (FAME-India) Scheme in March, 2015 to promote electric & hybrid vehicle (xEVs) in the country. The Phase-1 of the scheme was available up to 31 st March, 2019. The Scheme had four focus areas namely Demand Creation, Pilot Project, Technology Development/ R&D and Charging Infrastructure.

Based  on  outcome  and  experience  gained  during  Phase-I  of  FAME  India  Scheme  and after having consultations with all stakeholders, including Industry and Industry Associations, the  Government  notified  Phase-II  of  FAME  India  Scheme  for  a  period  of  three  years commencing from 1 st April,2019 with a total budgetary support of Rs. 10,000crore. This phase mainly  focuses  on  supporting  electrification  of  public  &  shared  transportation,  and  aims  to support through demand incentive about 7000 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 under the Scheme.

Under  Demand  Creation,  the  purchaser  of  electric/hybrid  vehicles  is  given  an  upfront reduction in purchase price by the dealer at the time of purchase of xEVs.

In  the  First  Phase  of  the  Scheme  about  2.8  lakh  hybrid  and  electric  vehicles  were supported by way of demand incentive amounting to about Rs 359 crore. Further, 425 electric and  hybrid  buses,  as  sanctioned  under  first  phase  of  the  scheme,  are  deployed  across  various cities in the country with Government Incentive of about Rs. 280 Cr. The Department of Heavy Industry  had  also  sanctioned  about  520  Charging  Stations/  Infrastructure  for  Rs.  43  Crore (approx.) under Phase-I of FAME-India Scheme.

Under Phase-II of FAME India Scheme, 46,338 Electric Vehicles have been supported till  27.01.2021  by  way  of  Demand  Incentive  amounting  to  about  Rs.  143  Cr.  Further,  6265 electrical buses have been sanctioned to various State/ City Transport Undertakings under PhaseII of the Scheme. This involves Government incentive of around Rs. 3000 Cr.

Department  of  Heavy  Industry  has  also  sanctioned  2,877  Electric  Vehicles  (EVs) Charging Stations amounting to Rs 500 Crore (Approx.) in 68 cities across 25 States/UTs under FAME  India  (Faster  Adoption  and  Manufacturing  of  Hybrid  &  Electric  Vehicles  in  India) scheme phase II.

Further,  following  initiatives  have  also  been  taken  up  by  the  Government  of  India  to promote the use of electric/ hybrid 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  has  allowed  sale  of  electricity  as  'service'  for  charging  of  electric vehicles. This would provide a huge incentive to attract investments into charging infrastructure.

(iii) The  Government,  vide  S.O.  5333(E)  dated  18th  October,  2018,  has  also  granted exemption  to  the  Battery  Operated  Transport  Vehicles  and  Transport  Vehicles  running  on Ethanol and Methanol fuels from the requirements of permit.

(iv) 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.

----------