Lok Sabha Question No. 3696 (UNSTARRED), answered on 2021-12-21
Subject: Target for Electric Vehicles
Ministry: HEAVY INDUSTRIES
Asked by: Y. S. Avinash Reddy, Geetha Viswanath Vanga, Kotha Prabhakar  Reddy, Rajiv Ranjan (Lalan) Singh

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 3696

ANSWERED ON 21.12.2021

## TARGET FOR ELECTRIC VEHICLES

3696.  SHRI Y.S. AVINASH REDDY: SHRIMATI VANGA GEETHA VISWANATH: SHRI KOTHA PRABHAKAR REDDY: SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH:

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

- (a) whether the Government has any plan to increase the Electric Vehicles (EV) to reduce carbon in all over the country, if so, the details thereof;
- (b) whether the Government aims to have Electric Vehicles sales accounting for 30 per cent of private cars, 70 per cent for commercial vehicles and 80 per cent for two and three wheelers by 2030 as there is an immediate need to decarbonise the transport sector;
- (c) if so the details thereof and the steps being taken by the Government in this regard;
- (d) whether the Government agrees that it is the right time to introduce maximum EV as petrol and diesel cost are very high, if so, the details thereof; and
- (e) the  steps  taken  by  Government  to  support  EV  manufacturing  companies  and consumers?

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

(a) to (d): Sir,  in  order  to  promote  manufacturing  and  adoption  of  electric  vehicle  in India,  the  Government  launched  the  Faster  Adoption  and  Manufacturing  of  (Hybrid  &) Electric Vehicles in India (FAME India) Scheme in 2015 on pan India basis with an aim to reduce dependency on fossil fuel and to address issues of vehicular emissions.  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.

Further, following steps have been taken by the Government for 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 with an increase in cap from 20% to 40% of the cost of vehicle from 11 th June, 2021, thus enabling cost of Electric two wheelers at par with that of ICE two wheeler vehicles.

(ii) The  Government  on  12 th May,  2021  approved  a  Production  Linked  Incentive  (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country in order to bring down prices of battery in the country.  Drop in battery price will result in cost reduction of electric vehicles.

(iii) Electric  Vehicles  are  covered  under  Production  Linked  Incentive  (PLI)  scheme  for Automobile  and  Auto  Components,  which  was  approved  on  15 th September  2021  with  a budgetary outlay of Rs. 25,938 crore for a period of five years.

(iv) 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%.

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

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

(e): Sir,  under  Phase-II  of  FAME-India  Scheme,  incentives  are  provided  to  buyers  of electric vehicles in the form of an upfront reduction in the purchase price of electric vehicles. Further, following two Production Linked Incentive (PLI) schemes are being implemented by the Ministry of Heavy Industries:

(i) The union cabinet on 12th May, 2021 approved a Production Linked Incentive (PLI) Scheme for setting up manufacturing facilities for Advance Chemistry Cell (ACC), Battery Storage in India, with a total manufacturing capacity of 50 Giga Watt Hour (GWh) and with an outlay of Rs. 18,100 crores for 5 years.

(ii) Government  has  approved  the  Production  Linked Incentive (PLI)  Scheme  for Automobile  and  Auto  Components  Industry  in  India  for  enhancing  India's  Manufacturing Capabilities for Advanced Automotive Products with a budgetary outlay of Rs. 25,938 crores over a period of five years.

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