Government To support 62,000 EVs, 15 Lakh E2Ws & E3Ws Through Subsidies

The government aims to support through subsidies about 62,000 electric passenger cars (EVs) and buses, besides 15 lakh electric 2Ws and 3Ws.

To Fasten the electric vehicle (EV) adoption in the country, the government aims to support through subsidies about 62,000 electric passenger cars and buses, besides 15 lakh electric three- and two-wheelers, Parliament was informed on Thursday. The government aims to support through subsidies about 62,000 electric passenger cars and buses, besides 15 lakh electric three- and two-wheelers, Parliament was informed on Thursday.

Interestingly the government is focused on creating electric charging infrastructure, Road Transport and Highways Minister Nitin Gadkari told the Lok Sabha in a written reply. Phase-II of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme is being implemented with total budgetary support of Rs 10,000 crore, he added.

Gadkari said, “This phase focuses on supporting electrification of public & shared transportation and aims to support, through subsidies, approx. 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars, and 10 lakh e-2 Wheelers.”

“In addition, creation of charging infrastructure is also supported to address range anxiety among users of electric vehicles,” he added.

Emphasizing that all vehicles will continue to be registered as long as they meet the requisite safety and emission standards, he said as per information from the Department of Heavy Industry (DHI), 98 electric vehicle models (32 two-wheelers, 50 three-wheelers, and 16 four-wheelers) have been registered under FAME India Scheme Phase-II as on February 8, 2021.

He told, presently GST on electric vehicles is 5 percent, and the proposal for further reduction of tax on such vehicles is not under consideration.

However, incentives are being provided to the purchasers of e-vehicles in the form of an upfront reduction in the purchase price.

“Further, the incentive is linked to battery capacity i.e. Rs. 10,000/KWh for e-2W, e-3W, and e-4W,” he declared. Also, his ministry has issued regulations and advisories to promote the use of electric vehicles.

These include retro-fitment of a hybrid electric system or electric kit to vehicles, “registration mark for Battery Operated Vehicles to be in Yellow color on Green background for the transport vehicles and, for all other cases, in White color on Green background” and “specifications for the grant of license to the age group of 16-18 years to drive gearless E scooters/ Bikes up to 4.0 KW.”

Additionally, other initiatives include an exemption to battery-operated transport vehicles and transport vehicles running on ethanol and methanol fuels from the requirements of the permit.

He announced an advisory has been issued to all states and Union Territories to promote the use of electric vehicles, besides an advisory regarding the sale and registration of electric vehicles without batteries.