Rs.25,938cr to support domestic manufacturing of e-vehicles
The Ministry of Heavy Industries (MHI) has sanctioned Rs.800 crore as capital subsidy to the three Oil Marketing Companies (OMCs) of the Ministry of Petroleum and Natural Gas (MoPNG) for establishment of 7,432 electric vehicle public charging stations.
This was stated by the Minister of State for Heavy Industries, Krishan Pal Gurjar in a written reply in the Lok Sabha on 25 July 2023.
He also said that the Government has taken following steps to give incentives/ subsidies on electric vehicles:
Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India): The Government notified Phase-II of FAME India Scheme initially for a period of five years commencing from 1st April, 2019 with a total budgetary support of Rs.10,000 crore. Under FAME-India Scheme phase-II, incentives are provided to buyers of electric vehicles in the form of an upfront reduction in the purchase price of electric vehicles.
Production Linked Incentive (PLI) Scheme for Automotive Sector: The Government on 15 Sept 2021 approved the PLI Scheme for Automotive Sector with a budgetary outlay of Rs.25,938 crores to support domestic manufacturing of vehicles. Electric vehicles are covered under this PLI scheme.
PLI Scheme for Advanced Chemistry Cell (ACC): The Government on 12 May 2021 approved PLI Scheme for manufacturing of ACC in the country with a budgetary outlay of Rs.18,100 crore. The scheme envisages to establish a competitive ACC battery manufacturing set up in the country for 50 GWh. Additionally, 5GWh of niche ACC technologies is also covered under the Scheme.
GST on EVs has been reduced from 12% to 5%; GST on chargers/ charging stations for EVs has been reduced from 18% to 5%.
Ministry of Road Transport & Highways (MoRTH) has announced that the battery-operated vehicles will be given green license plates and be exempted from permit requirements.
MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of the EVs.
He said the Government has taken various initiatives to create awareness about EVs in various colleges and universities including Amity University (Noida), NPTI Badarpur and NPTI Faridabad. Further, this work is also entrusted to NATRIP’s centers and ARAI to create EV awareness program in different institutions in India.
Following initiatives will be taken to create further awareness on E-Mobility by International Centre for Automotive Technology (ICAT) in collaboration with MHI:
PLI auto Conference on 22 Nov 2023;
World Energy Conservation Day Conference on 8 Dec 2023;
Strengthening India Automotive Sector – Way Forward Conference on 25 Jan 2024. Fiinews.com
