Lok Sabha Question No. 4420 (UNSTARRED), answered on 2023-03-28
Subject: Electric and Hybrid Vehicles Production
Ministry: HEAVY INDUSTRIES
Asked by: S. Gnanathiraviam

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 4420 ANSWERED ON 28.03.2023

## ELECTRIC AND HYBRID VEHICLES PRODUCTION

## 4420.  SHRI GNANATHIRAVIAM S.:

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

- (a) whether the Government plans to promote electric and hybrid vehicles production in the country;
- (b) if so, the details thereof; and
- (c) the  concrete  steps  taken  by  the  Government  for  early  implementation  of  the  National Mission for Hybrid and Electric Vehicles (NMHEV) in order to encourage manufacturing and selling of alternative fuel based vehicles?

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

(a) to (c): Yes sir, the Ministry of Heavy Industries has launched three schemes to promote electric and hybrid vehicles production in the country.  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  Rs.  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.

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 .

Further,  following  steps  have  been  taken  by  the  Government  to  promote  adoption  of electric vehicles in the country:

- i. The demand incentive for electric two wheelers has been increased to  Rs.15,000/KWh from  Rs.10,000/KWh  along  with  an  increase  in  cap  from  20%  to  40%  of  the  cost  of electric  vehicle  with  effect  from  11 th June  2021,  thus  enabling  cost  of  Electric  two wheelers at par with that of Internal Combustion Engines (ICE) two-wheeler vehicles.
- ii. 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%.
- iii. Ministry  of  Road  Transport  and  Highways  (MoRTH)  announced  that  battery-operated Vehicles will be given green license plates and be exempted from permit requirement for carrying passengers or goods.
- iv. MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.

********