Lok Sabha Question No. 2396 (UNSTARRED), answered on 2021-03-09
Subject: Promotion of Electric Vehicles
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Ratansinh Magansinh Rathod

## MINISTRY OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES

## GOVERNMENT OF INDIA DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION NO. 2396

ANSWERED ON 09.03.2021

## PROMOTION OF ELECTRIC VEHICLES

## 2396. SHRI RATANSINH MAGANSINH RATHOD:

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

- (a) the steps being taken by the Government for the promotion of electric vehicles;
- (b) whether a system is being developed so that the said vehicles may be run in villages;
- (c) if so, the measures being taken in this regard;
- (d) whether any technology is being brought so that the vehicles may give maximum mileage after one time charging and if so, the details thereof;
- (e) whether arrangement are being done to set up charging points at road sides; and
- (f) if so, the details thereof?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI ARJUN RAM MEGHWAL)

(a) to (c): 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.    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 crores.  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.  The  electric  vehicles  are  capable  of  being  run  in  rural  area  (villages)  as  well  as  urban areas.

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 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 18 th 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.

(v) In order to promote electric vehicles, the Government has notified for retro-fitment of hybrid electric system or electric kit to vehicles and has specified the type approval procedure of electric hybrid vehicles.

(vi) The Ministry of Road Transport & Highways has notified certain specifications for the grant of licence to age group of 16-18 years to drive gearless E scooters/ Bikes upto 4.0 KW.

(vii) Ministry  of  Housing  and  Urban  Affairs  has  made  amendment  in  the  Urban  and  Regional Development Plans Formulation and Implementation (URDPFI) guidelines to provide for electric vehicle charging stations in private and commercial buildings.

(d): The mileage of electric vehicles mainly depends on the battery capacity.  Further, demand incentive under FAME-India Scheme phase-II is linked to battery capacity of electric vehicles and vehicles fitted with only advanced batteries satisfying certain performance criteria are eligible for the demand incentives under this scheme.

(e) & (f): The  FAME-India  Scheme  envisages  support  for  setting  up  of  adequate  public charging  infrastructure  to  instill  confidence  amongst  EV  users,  through  active  participation  and involvement of various stakeholders including Government agencies, industries, and Public Sector Enterprises (PSEs).

In  the  first  phase  of  the  scheme,  Department  of  Heavy  Industry  had  sanctioned  520 Charging Stations for Rs. 43 Crore (approx.) in cities like Bangalore, Chandigarh, Jaipur and NCR of Delhi.  Further, the Department has sanctioned 2,877 Electric Vehicles (EVs) Charging Stations amounting to Rs. 500 Crore (Approx.) in 68 cities across 25 States/UTs under FAME India scheme phase II.

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