The Ministry of State for Heavy Industries has recently drawn attention to the advancements made under Phase II of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India Scheme (FAME India). In a written response to the Lok Sabha, the Ministry outlines how the scheme, created to promote the use of electric vehicles (EVs), has contributed substantially towards the growth of the country’s EV adoption and infrastructure development.
FAME India Phase-II: An Overview
Established under the National Electric Mobility Mission Plan, FAME India aims to stimulate the use of electric vehicles by offering subsidies. The initiative comprises two phases. Phase I, which spanned from 2015 to March 31, 2019, covered hybrid and electric technologies including Mild Hybrid, Strong Hybrid, Plug in Hybrid and Battery Electric Vehicles.
Phase II commenced on April 1, 2019, with a five-year duration and a budgetary support of Rs. 10,000 crores. The primary objective is to foster the adoption of 7,090 eBuses, 5 lakh e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars, and 10 lakh e-2 Wheelers. The focus remains on public and shared transport electrification.
Measures Taken to Encourage EV Adoption
A key component of promoting EVs is expanding the charging network. Under Phase I, 520 charging stations were approved. In Phase II, the scheme has sanctioned 2,877 EV Charging Stations in 68 cities across 25 States/UTs, along with 1,576 charging stations across nine Expressways and 16 Highways.
Capital Subsidy took a leap with Rs. 800 crore sanctioned for setting up 7,432 public EV charging stations. Furthermore, the government rolled out numerous incentives and subsidies for EVs under FAME India Scheme Phase-II, including a reduction in the upfront purchase price of EVs.
Government Incentives and Tax Benefits
The government has earmarked a budgetary outlay of Rs. 25,938 crores under the Production Linked Incentive (PLI) Scheme for the Automotive Sector. The scheme is designed to support domestic manufacturing of vehicles, including EVs.
Similarly, the PLI Scheme for Advanced Chemistry Cell (ACC) comes with a budgetary outlay of Rs. 18,100 crore to establish a competitive ACC battery manufacturing setup.
In addition, the government has reduced the Goods and Services Tax (GST) on EVs from 12% to 5%, and on chargers/charging stations for EVs from 18% to 5%. Battery-operated vehicles are exempt from permit requirements and entitled to green license plates. The Ministry of Road Transport and Highways (MoRTH) has also advised states to waive road tax on EVs to lower initial costs.
Raising Awareness about E-Mobility
The Ministry has undertaken various initiatives to create awareness about EVs in colleges/universities and institutions across India. This includes collaborations with the International Centre for Automotive Technology (ICAT) to conduct EV awareness programs. With such strategic measures in place, FAME India Phase-II continues to drive the goal of sustainable and eco-friendly transport in the country.
