7,45,713 EVs Supported By Demand Incentive Amount Of Rs 3,200 Cr By Govt
Under Phase-II of the FAME India Scheme, 7,45,713 Electric Vehicles have been supported till 07 Dec 2022 by way of Demand Incentive amounting to about Rs 3,200 crore. Further, MHI has sanctioned 6315 e-buses to 65 cities/STUs/CTUs/ State Govt. entities for intracity and intercity operations across 26 states/UT under the Scheme.
The Government notified Phase II of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme for a period of five years commencing from 01 April 2019 with a total budgetary support of Rs 10,000 crore. This phase mainly focuses on supporting the electrification of public & shared transportation and aims to support through demand incentive 7090 e-Buses, five lakh e-three-wheelers, 55000 e-four-wheeler passenger cars and 10 lakh e-two-wheelers. Under this scheme, incentives are provided to buyers of electric vehicles in the form of an upfront reduction in the purchase price of electric vehicles.
Union Minister of State for Heavy Industries, Krishan Pal Gurjar shared the information and data in a written reply at Lok Sabha today.
The Government of India has been taking the following steps to address the challenges faced in the adoption of electric mobility in the country. From 11 June, 2021 the demand incentive under Phase II of FAME India Scheme has been increased to Rs 15,000/KWh from Rs 10,000/KWh with an increase in cap from 20 per cent to 40 per cent of the cost of the vehicle, thus enabling the cost of Electric two-wheelers at par with that of ICE two-wheeler vehicles. Further, on 25 June 2021 Phase II of FAME India scheme was extended for a period of two years upto 31 March 2024. The government on 12 May 2021 approved the Production Linked Incentive (PLI) Scheme for the manufacturing of Advance Chemistry Cell (ACC) in the country in order to bring down prices of battery in the country. The drop in battery prices will result in cost reduction of Electric Vehicles.
Electric Vehicles are covered under Production Linked Incentive (PLI) scheme for Automobile and Auto Components, which was approved on 15 September 2021 with a budgetary outlay of Rs 25,938 crore for a period of five years. GST on electric vehicles has been reduced from 12 per cent to 5 per cent; GST on chargers/ charging stations for electric vehicles has been reduced from 18 per cent to 5 per cent.
Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license 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 EVs.
(PIB)
