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India’s Electric Vehicle Adoption Drive a Success

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Soaring Electric Vehicle sales in India a testimony to FAME Scheme Success of the Union Government.

The Ministry of Heavy Industries (MHI) is actively spearheading various initiatives aimed at advancing sustainable development, promoting cleanliness (Swachhata), and curbing carbon emissions. MHI’s unwavering commitment aligns with the nation’s ambitious goal of achieving net-zero emissions.

Driving Electric Vehicle (EV) Adoption

MHI has played a pivotal role in accelerating the adoption of Electric Vehicles (EVs) and reducing carbon emissions. Notably, as on date, under the FAME India Scheme II, a staggering 1,016,598 electric vehicles have received support through demand incentives, amounting to approximately Rs 4,807 crores. This initiative has already resulted in saving approximately 26,041,426 litres of fuel. And there has been a substantial reduction of about 37,718,893 Kg of CO2 emissions.

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A Sustainable Path Forward

These impressive statistics are poised to continue growing as time progresses. The sales of EVs, which were virtually negligible in 2014, have now surged to account for approximately 5% of total vehicle sales. These accomplishments underscore the Ministry’s steadfast dedication to sustainable development. Along its proactive approach to tackling the pressing challenges of climate change.

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About FAME India Scheme 2: Driving Electric Mobility

The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II, administered by the Ministry of Heavy Industries, commenced on April 1, 2019, with a substantial budget of Rs. 10,000 crore allocated for a five-year duration. This phase primarily emphasizes the electrification of public and shared transportation, with a significant focus on providing demand incentives for the following:

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  • eBuses: Aiming to support 7,090 electric buses.
  • e-3 Wheelers: Targeting 5 lakh electric three-wheelers.
  • e-4 Wheeler Passenger Cars: Focusing on 55,000 electric four-wheeler passenger cars.
  • e-2 Wheelers: Aiming to support 10 lakh electric two-wheelers.

Additionally, the scheme supports the creation of charging infrastructure across the country.

Charging Infrastructure Expansion

In Phase-I of the FAME India Scheme, the Ministry of Heavy Industries sanctioned 520 charging stations/infrastructure. Building on this success, Phase II has seen the sanctioning of 2,877 Electric Vehicle Charging Stations, spanning 68 cities across 25 States/Union Territories, as well as 1,576 charging stations along 9 Expressways and 16 Highways.

Capital Subsidy for Charging Stations

The Ministry of Heavy Industries has allocated Rs. 800 crore as a capital subsidy to three Oil Marketing Companies (OMCs) under the Ministry of Petroleum and Natural Gas (MoPNG) for the establishment of 7,432 electric vehicle public charging stations.

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Incentives and Subsidies under FAME Scheme

The Government of India has introduced several measures to incentivize electric vehicles:

  • FAME India Scheme Phase-II: This scheme offers incentives in the form of upfront purchase price reduction for electric vehicle buyers.
  • Production Linked Incentive (PLI) Scheme for Automotive Sector: Approved in September 2021 with a budgetary outlay of Rs. 25,938 crore, this scheme supports domestic vehicle manufacturing, including electric vehicles.
  • PLI Scheme for Advanced Chemistry Cell (ACC): Launched in May 2021 with a budgetary allocation of Rs. 18,100 crore, this scheme aims to establish competitive ACC battery manufacturing facilities for 50 GWh of production, including 5GWh of niche ACC technologies.
  • GST Reduction: The Goods and Services Tax (GST) on electric vehicles has been lowered from 12% to 5%, while the GST on chargers and charging stations for EVs has been reduced from 18% to 5%.
  • Green License Plates: Battery-operated vehicles are now eligible for green license plates. They are exempt from permit requirements, as announced by the Ministry of Road Transport & Highways (MoRTH).
  • Road Tax Waiver: MoRTH has advised states to waive road tax on electric vehicles.

These concerted efforts by the government underscore its commitment to promoting electric mobility and reducing carbon emissions in India.

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