Lok Sabha Question No. 132 (UNSTARRED), answered on 2021-02-02
Subject: Incentives to Auto Sector
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Manoj Kumar Tiwari, John Barla, Gajendra Singh Patel

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

## LOK SABHA UNSTARRED QUESTION NO. 132

ANSWERED ON 02.02.2021

## INCENTIVES TO AUTO SECTOR

## 132. SHRI MANOJ TIWARI:

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

- (a) whether the Government has given any incentives to auto sector for encouraging e-vehicle production;
- (b) if so, the details thereof;
- (c) if not, the reasons therefor; and
- (d) the details of such incentives so far, especially in Delhi/NCR?

## ANSWER

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

(a) to (d): Sir, the Department of Heavy Industry (DHI) is administering the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme since 01 st April, 2015  to  promote  adoption  of  electric/  hybrid  vehicles  (xEVs)  in  India  with  an  aim  to  reduce dependence on fossil fuel. At present, Phase-II of FAME India Scheme is being implemented for a period of 3 years w.e.f. 01 st April, 2019 with a total budgetary support of Rs. 10,000 crore. This phase  focusses  on  supporting  electrification  of  public  &  shared  transportation  and  aims  to support,  through  subsidies,  approx.  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 to address range anxiety among users of electric vehicles.

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 the 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.

Under FAME-India Scheme, about 23,800 electric vehicles (e-2W, e-3W & e-4W) and 400 electric buses have been supported till 27.01.2021 in the city of Delhi.

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