Maharashtra Races To Top In EV Pile With FAME 2 Fuel

Maharashtra is leading in the number of EVs sold across all segments. The State has achieved this place with the help of the FAME II Scheme. It has 2.96 lakh EVs out of total 16.73 lakh EVs/hybrids in the country. The next in line are Karnataka and Tamil Nadu with 2,03,592 and 1,69,006 respectively.

FAME Phase-II is  aimed at generating demand by way of supporting 7000 e-buses, 5 lakh e-3 wheelers, 55000 e-4 wheeler passenger cars (including Strong Hybrid) and 10 lakh e-2 wheelers. Presently, Phase-II of FAME India Scheme is being implemented for a period of 5 years from April, 2019 with a total budgetary support of Rs 10,000 crore. In order to promote adoption of hybrid and electric vehicles in the country, the Government launched the Faster Adoption and Manufacturing of (Hybrid &) and Electric Vehicles in India (FAME India) Scheme since 2015, as per official statement.

It should be noted that Maharashtra was the first State in India to design and notify an EV policy with a goal to adopt electric vehicles (EVs) and contribute towards a wide range of sustainability goals like-better air quality, reduced noise pollution, enhanced energy security, and reduced greenhouse gas emissions.

Maharashtra’s first EV policy was released in February 2018 and to further accelerate EV sales and stimulate manufacturing in the state, Maharashtra updated its EV Policy on 23 July 2021. The new policy aims to capitalize on the recent policy and technology developments and further the state’s EV ambition, as per government site.

However, fulfilling its ambition the State availed the benefits of the FAME Scheme and gained top position in EVs.

As per government data available, the sale of EVs in FY 2021-22 has gone up over three times as compared to sale of EVs in FY 2020-21 from 1,34,460 (e2W:41048, e3W-88391 and e4w-5021) to 4,28,224.00 (e2W: 2,31,434, e3W: 1,77,884, e4W:18,906) The increase in sale of EVs is attributed mainly to the incentive provided under FAME India Scheme Phase-II, provided to buyers of electric vehicles meeting FAME criteria in the form of an upfront reduction in the purchase price of electric vehicles.

The incentive is linked to battery capacity i.e. Rs. 10,000/KWh for e-3W and e-4W with a cap 20% of the cost of vehicle. Further, the incentive/ subsidies for e-2W has been increased to Rs. 15,000/KWh from Rs. 10,000/KWh with an increase in cap from 20% to 40% of the cost of vehicle w.e.f. 11th June, 2021.

CENTRAL GOVERNMENT’S EFFORTS

1) The Government on May 12, 2021 approved a Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country in order to bring down prices of batteries in the country.

2) Electric Vehicles are covered under PLI scheme for Automobile and Auto Components, which was approved on September 15, 2021 with a budgetary outlay of Rs 25,938 crore for a period of five years.

3) GST on electric vehicles has been reduced from 12 per cent to 5 per cent; GST on chargers/charging stations for electric vehicles has been reduced from 18 per cent to 5 per cent.

4) The Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.