New Delhi, August 2024 — In a landmark move to bolster the adoption of electric and hybrid vehicles, the Indian government has been rolling out a series of initiatives aimed at reducing fossil fuel dependence and curbing vehicular emissions. Spearheading this movement is the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme, initially launched in 2015 and now in its second phase.
FAME India Scheme: A Dual-Phase Strategy
The FAME India Scheme has been pivotal in driving the electric vehicle (EV) revolution across the nation. Phase-I of the scheme saw the deployment of 425 electric and hybrid buses in various cities, supported by a government incentive of approximately Rs. 280 crore. Building on this success, Phase-II commenced on April 1, 2019, with a substantial budgetary allocation of Rs. 11,500 crore. This phase aims to expand the reach of EVs significantly, including the sanctioning of 6,862 electric buses, backed by incentives totaling around Rs. 3,009 crore.
Strategic Incentives and Schemes
In addition to FAME, the Ministry of Heavy Industries (MHI) has introduced several other schemes to promote EV adoption:
- Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components: With a hefty budget of Rs. 25,938 crore, this scheme enhances India’s manufacturing capabilities for advanced automotive products, including various categories of electric vehicles such as e-2Ws, e-3Ws, e-4Ws, e-trucks, and e-buses.
- Electric Mobility Promotion Scheme (EMPS) 2024: Launched for a six-month period from April 1, 2024, to September 30, 2024, with an outlay of Rs. 778 crore, EMPS 2024 provides incentives to buyers of electric two-wheelers and three-wheelers.
- PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage: Aimed at boosting domestic battery manufacturing, this scheme has a budget of Rs. 18,100 crore.
- Scheme to Promote Manufacturing of Electric Passenger Cars: This initiative seeks to attract global investments and position India as a prime destination for EV manufacturing.
Boosting EV Infrastructure
Under Phase-II of the FAME India scheme, MHI has sanctioned Rs. 800 crore to three Oil Marketing Companies (OMCs) for establishing 7,432 Electric Vehicle Public Charging Stations (EVPCS). An additional Rs. 73.50 crore was sanctioned for upgrading 980 existing low-capacity EVPCS. Specific allotments include 438 EVPCS for Madhya Pradesh and 552 for Rajasthan, underscoring the nationwide scope of these efforts.
Government Initiatives to Encourage EV Adoption
To further incentivize the shift towards electric vehicles, the government has implemented several supportive measures:
- GST Reduction: The Goods and Services Tax (GST) on electric vehicles and chargers/charging stations has been slashed to 5%.
- Green License Plates: Battery-operated vehicles are granted green license plates and are exempted from permit requirements.
- Road Tax Waivers: The Ministry of Road Transport & Highways (MoRTH) has advised states to waive road tax on EVs, reducing their initial cost and making them more accessible to consumers.
This comprehensive approach by the Indian government reflects a robust commitment to fostering a sustainable and eco-friendly automotive future. The Minister of State for Heavy Industries and Steel, Bhupathi Raju Srinivasa Varma, highlighted these developments in a recent written reply in the Lok Sabha, emphasizing the ongoing efforts to transform India’s transportation landscape.
