Fame India Scheme

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.