Lok Sabha Question No. 2436 (UNSTARRED), answered on 2024-12-10
Subject: Subsidy for EVs
Ministry: HEAVY INDUSTRIES
Asked by: Shri Sukhjinder Singh Randhawa

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 2436

ANSWERED ON 10.12.2024

## SUBSIDY FOR EVs

## †2436. SHRI SUKHJINDER SINGH RANDHAWA :

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

- (a) whether the Government is likely to provide subsidy to the State Governments for e-vehicles including private cars;
- (b) if so, the details thereof;
- (c) the various steps being taken/proposed to be taken to promote e-vehicles in Punjab;
- (d) whether the Government has formulated any policy for scrapping old vehicles;
- (e) if so, the details thereof and if not, the reasons therefor;
- (f) whether the Government is contemplating to convert old vehicles into e-vehicles; and
- (g) if so, the details thereof and if not, the reasons therefor?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES

## (SHRI BHUPATHIRAJU SRINIVASA VARMA)

- (a) to (c): No Sir.  Direct  subsidy  for  e-vehicles  is  not  provided  to  State  Governments. However, consumers of EVs are incentivised through various schemes.  MHI has formulated the following schemes to promote electric vehicles (EVs) on pan India basis including the State of Punjab: -
- 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  approved  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. PLI Scheme for Advanced Chemistry Cell (ACC): 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. It is a two-year scheme which aims to support electric vehicles including e-2W, e-3W, e-Trucks, e-buses, e-Ambulances, EV public charging stations and upgradation of 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  ₹4150  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.

(d) & (e): The  Ministry  of  Road  Transport  and  Highways  has  formulated  the  Vehicle Scrapping Policy that includes a system of incentives/disincentives for creation of an ecosystem to phase out older, unfit polluting vehicles across the country.

(f) & (g): No such proposal is under consideration in the Ministry of Heavy Industries. However, the Government of India has launched various schemes to support Demand side and Supply side of the electric vehicles.

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