The Ministry of Heavy Industries formulated a Scheme Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015 to promote the adoption of electric/ hybrid vehicles (xEVs) in the country. At present, Phase-II of the FAME India Scheme is being implemented for a period of 5 years w.e.f. April 01, 2019, with total budgetary support of Rs. 10,000 crores.
This phase focuses on supporting electrification of public & shared transportation and aims to support, through subsidies, 7090 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars, and 10 lakh e-2 Wheelers. 38 original equipment manufacturers (OEMs) of e-2W, e-3W & e- 4W have been registered under phase-II of the FAME-India Scheme as of 9th August 2021. Details of Electric Vehicle Manufacturers/ Original Equipment Manufacturers registered under Phase- II of Fame India Scheme are given at Annexure I.
Under the FAME-II scheme, the demand incentive for e-2W is increased to Rs. 15,000/KWh from Rs. 10,000/KWh with an increase in cap from 20% to 40% of the cost of the vehicle to increase adoption of e-2W. Further, the phase-II of FAME-India Scheme is extended for a period of two years after 31st March 2022.
Then, the following initiatives, have also been taken up by the Government of India for the promotion of electric vehicles in the country –
- The Government on May 12, 2021, approved a Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country to bring down prices of batteries in the country. A drop in battery price will result in cost reduction of electric vehicles.
- 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%.
- 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.