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Fame India Scheme
Source: PIB

GS II:  Government Policies & Interventions

Overview

  1. News in Brief
  2. Government Incentives and Subsidies for Electric Vehicles
  3. EV awareness programs in India

Why in News?

The Ministry of Heavy Industries is putting the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II into action for a period of five years starting on April 1, 2019.

News in Brief

  • The Scheme is with a total budgetary contribution of Rs. 10,000 crore.
  • This phase seeks to support through demand incentives 7090 eBuses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers in order to boost the electrification of public & shared transport.
  • In addition, the Scheme provides funding for the development of charging infrastructure.

    Fame India Scheme
    Image by Mikes-Photography from Pixabay
  • Under the Phase-I of the FAME India Scheme, the Ministry of Heavy Industries had approved 520 Charging Stations/Infrastructure.
  • Under Phase II of the FAME India Scheme, this Ministry has also approved 2,877 electric vehicle charging stations in 68 cities across 25 States and UTs
    • Also, 1,576 charging stations along 9 motorways and 16 highways.
  • The three Oil Marketing Companies (OMCs) of the Ministry of Petroleum and Natural Gas (MoPNG) have been granted Rs. 800 crore as capital subsidies for the construction of 7,432 public charging stations for electric vehicles.
Government Incentives and Subsidies for Electric Vehicles

  • Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India)
    • The government announced Phase-II of the FAME India Scheme with an initial financial assistance of Rs. 10,000 crore for a period of five years beginning on April 1, 2019.
    • Incentives are given to purchasers of electric cars under the FAME-India Scheme phase-II in the form of an upfront discount on the price of electric vehicles.
  • Production Linked Incentive (PLI) Scheme
    • The government approved the Scheme for the Automotive Sector on September 15, 2021, with a budgetary allocation of Rs. 25,938 crores to encourage domestic car manufacture.
    • This PLI programme covers electric automobiles.
  • PLI Scheme for Advanced Chemistry Cell (ACC)
    • On May 12, 2021, the government authorised the PLI Scheme, which would cost Rs. 18,100 crore and allow for the domestic production of ACC.
    • The plan calls for establishing a 50 GWh ACC battery production facility in the nation.
    • Additionally, the Scheme additionally covers 5GWh of specialised ACC technology.
  • The GST on electric vehicles has been lowered from 12% to 5%.
  • The GST on EV chargers and charging stations has been lowered from 18% to 5%.
  • Battery-powered cars will receive green licence plates and be free from permission procedures, according to a statement from the Ministry of Road Transport & Highways (MoRTH).
  • In order to assist lower the initial cost of EVs, MoRTH issued a statement instructing states to waive road tax on EVs.
EV awareness programs in India

  • The Indian government has launched a number of campaigns to raise awareness of electric vehicles (EVs) in several universities and colleges, including Amity University (Noida), NPTI Badarpur, and NPTI Faridabad.
  • Additionally, NATRIP’s centres and ARAI are given this task to develop an EV awareness programme for various Indian colleges.
  • In conjunction with MHI, the International Centre for Automotive Technology (ICAT) has undertaken the following activities to raise awareness of e-mobility:
    • Conference & Exposition “PanchamritkiAur” on February 04, 2023 at ICAT
    • Seminar of EV “How is EV Driving India’s Green Mobility Mission on March 29, 2023 at ICAT
    • Seminar on “Can the EV sector be India’s next growth engine” on April 28, 2023 at ICAT
    • Webinar on AAT components and PLI auto scheme on August 11, 2023
    • PLI auto Conference on November 22, 2023
    • World Energy Conservation Day Conference on December 08, 2023
    • Strengthening India Automotive Sector- Way Forward Conference on January 25, 2024

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