Ministry of Heavy Industries

Under Phase-II of FAME India Scheme, 7,45,713 Electric Vehicles supported till 07 Dec 2022 by way of Demand Incentive amounting to about Rs. 3,200 Cr.

Posted On: 13 DEC 2022 2:56PM by PIB Delhi

Under Phase-II of FAME India Scheme, 7,45,713 Electric Vehicles have been supported till 07.12.2022 by way of Demand Incentive amounting to about Rs. 3,200 Cr.  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 1st April, 2019 with a total budgetary support of Rs. 10,000 crore.  This phase mainly focuses on supporting electrification of public & shared transportation and aims to support through demand incentive 7090 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 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. 

Following steps have been taken by the Government of India to address the challenges faced in adoption of electric mobility in the country:

  1. From 11th 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% to 40% of the cost of vehicle, thus enabling cost of Electric two wheelers at par with that of ICE two wheeler vehicles. Further, on 25th June, 2021 Phase II of FAME India scheme was extended for a period of 2 years upto 31st March 2024.
  2. The Government on 12th May 2021 approved the Production Linked Incentive (PLI) Scheme for 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.
  3. Electric Vehicles are covered under Production Linked Incentive (PLI) scheme for Automobile and Auto Components, which was approved on 15th September 2021 with a budgetary outlay of Rs. 25,938 crore for a period of five years.
  4. 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%.
  5. Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.
  6. MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.

This information was given by the Union Minister of State for Heavy Industries, Shri Krishan Pal Gurjar in a written reply in Lok Sabha today.

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