Dec 7: 49 original equipment manufacturers (OEMs) of e-2W, e-3W & e- 4W have been registered under phase-II of FAME-India Schemeas on 26th November, 2021.
Ministry of Heavy Industries formulated a Scheme Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015 to promote adoption of electric/ hybrid vehicles (xEVs) in the country. At present, Phase-II of FAME India Scheme is being implemented for a period of 5 years w.e.f. 01stApril, 2019 with a total budgetary support of Rs. 10,000 crores. This phase focusses 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.
Under FAME-II scheme, the demand incentive for e-2W is increased toRs. 15,000/KWh from Rs. 10,000/KWh with an increase in cap from 20% to 40% of cost ofvehicle to increase adoption of e-2W. Further, the phase-II of FAME-India Scheme isextended for a period of two years after 31st March, 2022.
The following initiatives have also been taken up by the Government of India forpromotion of electric vehicles in the country –
- The Government on 12th May, 2021 approved a Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country in order to bring down prices of battery in the country. 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.