Lok Sabha Question No. 3623 (UNSTARRED), answered on 2024-12-17
Subject: Electric Car
Ministry: HEAVY INDUSTRIES
Asked by: Shri Aditya Yadav

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 3623

ANSWERED ON 17.12.2024

## ELECTRIC CAR

## 3623. SHRI ADITYA YADAV:

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

(a) whether it has been brought to the notice of the Government that many car buyers who are positive about buying an electric car due to the lower cost of ownership over the lifespan of the vehicle, step back and choose to buy a petrol or diesel model instead as the Internal Combustion Engine  (ICE)  vehicles  come  with  substantially  cheaper  sticker  prices  than  their  electric counterparts; and

(b) if so, the details of the preventive steps that are proposed to be taken by the Government keeping in mind that factors like lack of EV charging infrastructure, range anxiety, considerably longer charging time impacting overall journey duration etc. are adding woe to worry for the EV buyers or potential electric car buyers?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

(a) & (b): The challenges faced in the widespread adoption of Electric Vehicles (EVs) have mainly been the high upfront cost of electric vehicle as compared to corresponding Internal Combustion Engine (ICE) and customer anxiety about range of electric vehicles. The cost of the battery is a significant factor in the overall cost of an EV.

Further,  the  Ministry  of  Heavy  Industries  has  taken  following  steps  to  address  the various challenges faced in adoption of EVs including cost of electric vehicles, EV Charging Infrastructure and range anxiety:

- i. Faster  Adoption  and  Manufacturing  of  (Hybrid  &)  Electric  Vehicles  in  India (FAME India) Scheme Phase-II: The  Government implemented this scheme for a period of five years from 1 st April, 2019 with a total budgetary support of ₹11,500 crore. The  scheme  incentivised  e-2Ws,  e-3Ws,  e-4Ws,  e-buses  and  EV  public  charging stations.
- ii. Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry  in  India  (PLI-Auto): The  Government  notified  this  scheme  on  23 rd September, 2021 for Automobile and Auto Component Industry in India for enhancing India's  manufacturing  capabilities  for  Advanced  Automotive  Technology  (AAT) products with a budgetary outlay of ₹25,938 Crore.  The scheme proposes financial incentives  to  boost  domestic  manufacturing  of  AAT  products  with  minimum  50% Domestic Value Addition (DVA) and attract investments in the automotive manufacturing value chain.

- iii. Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery  Storage: The  Government  on  12 th May,  2021  approved  PLI  Scheme  for manufacturing of ACC in the country with a budgetary outlay of ₹18,100 crore.  The scheme aims to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries.
- iv. PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme: This scheme with an outlay of ₹10,900 crore was notified on 29 th September, 2024 for a period of two years.  The Electric Mobility Promotion Scheme (EMPS) 2024 implemented for the period of 06 months, from 1 st April 2024 to 30 th September, 2024, is subsumed in PM E-DRIVE Scheme.  The scheme aims to support electric vehicles including e-2W, e-3W, e-Trucks, e-buses, e-Ambulances, EV public charging stations and upgradation of vehicle testing agencies.
- v. PM  e-Bus  Sewa-Payment  Security  Mechanism  (PSM)  Scheme :  This  Scheme notified on 28 th October, 2024, has an outlay of ₹3,435.33 crore and aims to support deployment of more than 38,000 electric buses.  The objective of scheme is to provide payment security to e-bus operators in case of default by Public Transport Authorities (PTAs).
- vi. Scheme  for  Promotion  of  Manufacturing  of  Electric  Passenger  Cars  in  India (SPMEPCI) was notified on 15 th March, 2024 to promote the manufacturing of electric cars  in  India.    This  requires  applicants  to  invest  a  minimum  of  ₹4,150  crore  and  to achieve a minimum DVA of 25% at the end of the third year and DVA of 50% at the end of the fifth year.

Measures taken by other Ministries include the following initiatives:-

- i. Ministry of Power has issued guidelines and standards for EV Charging Infrastructure titled,  "Guidelines  for Installation  and  Operation  of  Electric  Vehicle  Charging Infrastructure-2024"  on  17 th September,  2024.  These  revised  guidelines  outline standards and protocols to create a connected &  interoperable EV  charging infrastructure  network  in  the  country.    These  guidelines  also  facilitate  electricity connections for EV charging stations.
- ii. Ministry of Finance has reduced GST on EVs from 12% to 5%.
- iii. Ministry of Road Transport & Highways (MoRTH) announced that the battery-operated vehicles will be given green plates and be exempted from permit requirements.  MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of the EVs.
- iv. Ministry of Housing and Urban Affairs has amended the Model Building Bye-Laws, mandating the inclusion of charging stations in private and commercial buildings.

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