India Launches Three Schemes to Boost Electric and Hybrid Vehicle Production
Delhi, 28th March 2023: The Minister of State for Heavy Industries, Krishan Pal Gurjar, announced in the Lok Sabha that the Ministry has launched three schemes to promote the production of electric and hybrid vehicles in India. The first scheme is the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) with a budget of Rs. 10,000 crore for five years starting from April 1, 2019. This scheme provides subsidies to electric and hybrid vehicles used in public transportation or for commercial purposes, including e-buses, e-3Ws, and e-4Ws, and privately owned e-2Ws.
The FAME II scheme aims to support the production of 7,090 e-buses, 5 lakh e-3Ws, 55,000 e-4W passenger cars, and 10 lakh e-2Ws. The second scheme is the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry, with a budget of Rs. 25,938 crore. It provides financial incentives for domestic manufacturing of advanced automotive technology products, including electric vehicles and their components. The third scheme is the PLI Scheme for Advanced Chemistry Cell (ACC) manufacturing, with a budget of Rs. 18,100 crore, which incentivizes the establishment of Giga scale ACC manufacturing facilities in the country for 50 GWh.
The government has also taken several other steps to promote the adoption of electric vehicles, such as increasing the demand incentive for electric two-wheelers and reducing the GST on electric vehicles and charging stations. The Ministry of Road Transport and Highways has announced the exemption of battery-operated vehicles from permit requirements and the issuance of green license plates, and has advised states to waive road tax on EVs to reduce their initial cost.
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