Government To Support About 15.62 Lakh Electric Vehicles Through Subsidies: Report

To boost electric mobility in the country the Government of India has announced its plan to support 15.62 lakh electric vehicle through subsidies. The Union Minister for Road Transport and Highways (MoRTH), Nitin Gadkari announced in Parliament that the phase-II of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme is being implemented with total budgetary support of Rs. 10,000 crore. With this, the government plans to support about 62,000 electric passenger cars and buses, and 15 lakh electric three- and two-wheelers in India.

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Union Minister Nitin Gadkari said the main focus of the second phase of FAME initiative is the electrification of public and shared transportation

Gadkari said that the main focus of the second phase of FAME initiative is the electrification of public and shared transportation, by supporting approximately 7000 electric buses, 5 lakh electric three-wheelers, 55,000 electric passenger cars, and 10 lakh electric two-wheelers. In his speech, Gadkari also said that the government also plans to support the creation of charging infrastructure to address range anxiety among users of electric vehicles.

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The Government plans to support 10 lakh electric two-wheelers through subsidies, but there will be no further reduction in taxes on EVs

However, the Union Minister also confirmed that there are no plans to further reduce the tax on electric vehicles. Presently the GST on electric vehicles is 5 per cent, and incentives are being provided to consumers buying e-vehicles in the form of an upfront reduction in the purchase price. MoRTH India has also issued regulations and advisories to promote the use of electric vehicles, which include - retro-fitment of a hybrid electric system or electric kit to vehicles, green number plates, and grant of licence to the age group of 16-18 years to drive gearless E scooters/ Bikes up to 4.0 KW. The ministry has also announced exemption to battery-operated transport vehicles and transport vehicles running on ethanol and methanol fuels from the requirements of the permit.

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Gadkari also mentioned that according to data provided by the Department of Heavy Industry (DHI), 98 electric vehicle models (32 two-wheelers, 50 three-wheelers and 16 four-wheelers) have been registered under FAME India Scheme Phase-II as on February 8, 2021.