Government Takes Various Steps for Promotion of Manufacturing of Electric Vehicles

An upfront reduction in the purchase price of the EVs under the FAME- India scheme is an incentive provided to buyers of EVs.

The incentive subsidies linked to the battery capacity, for e-2W are increased to Rs 15,000/ KWh (US$ 199.56/KWh) which was previously Rs 10,000/KWh (US$ 133.04/KWh).

The various initiatives taken by the government to promote electric vehicles in India are as follow:

1.         GST on the electric vehicles and the chargers/ charging stations has been reduced from 12% to 5% and from 18% to 5%, respectively.

2.         A notification has been released by the Ministry of Power regarding charging infrastructure standards permitting private charging at residences and offices.

3.         Battery-operated vehicles will be given green license plates and be exempted from permit requirements, announced by the Ministry of Road Transport & Highways (MoRTH).

4.         A notification advising states to waive road tax on EVs has been issued by MoRTH, leading to a reduction in the initial costs of EVs.

5.         Model Building Bylaws 2016 was amended to establish charging stations and infrastructure in private and commercial buildings by the Ministry of Housing & Urban Affairs (MoHUA).

As stated by the Ministry of Road Transport and Highways- as per the e-Vahan portal, Electric vehicles registered in the country over the last two years are as follow:

Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India (FAME INDIA) scheme formulated by the Ministry of Heavy Industries in 2015 to promote the adoption of electric/ hybrid vehicles (xEVs) in the country. Currently, phase- 2 of the FAME India Scheme is being implemented for a period of 5 years with effect from 1st April 2019 with Rs 10,000 crores (US$ 1.34) as the budgetary support. This phase aims on supporting the electrification of public & shared transportation as well as provide support through subsidies, 7090 e-Buses; 5,00,000 e-4 Wheeler Passenger cars, and 10,00,000 e-2 Wheelers.

To address range anxiety among users of electric vehicles, the creation of charging infrastructure is also supported.

An upfront reduction in the purchase price of the EVs under the FAME- India scheme is an incentive provided to buyers of EVs. The incentive subsidies are linked to the battery capacity, which is Rs 10,000/KWh (US$ 133.04) for e-3W and a cap of 20% of the cost of an e-4W vehicle. Further, the incentives/ subsidies for e-2W are increased to Rs 15,000/ KWh (US$ 199.56) which was previously Rs 10,000/KWh (US $133.04) with an increase in cap from 20% to 40% of the cost of the vehicle with effect from 11th June 2021.

Mr. Krishan Pal Gurjar, Minister of State for Heavy Industries, gave this information in a written reply in the Rajya Sabha on 3^rd December 2021.