7.45 lakh EVs supported by way of demand incentive, says minister

Union Minister of State for Heavy Industries Krishan Pal Gurjar in a written reply in Lok Sabha today said 7,45,713 Electric Vehicles have been supported till December 7, 2022, by way of demand incentive, amounting to about Rs 3,200 crore under Phase-II of FAME India Scheme.

Further, MHI has sanctioned 6315 e-buses to 65 cities/STUs/CTUs/state government entities for intracity and intercity operations across 26 states/UTs under the Scheme. 

The government notified Phase-II of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme for a period of five years commencing from April 1, 2019, with a total budgetary support of Rs 10,000 crore. 

This phase would focus on offering support both public and shared transportation electrification. Incentives are provided to buyers of EVs in the form of an upfront reduction in the purchase price.  

In his reply, the minister said this aims to support through demand incentive 7090 e-Buses, five lakh e-3 Wheelers, 55,000 e-4-wheeler passenger cars, and 10 lakh e-2-wheelers.

He also mentioned the steps taken by the government to address challenges faced in adoption of electric mobility in the country.

From June 11, 2021, demand incentive under Phase II of FAME India Scheme has been increased to Rs 15,000/KWh from Rs 10,000/KWh with an increase in cap from 20-40% of the cost of vehicle. This made the cost of electric two-wheelers at par with that of ICE two-wheeler vehicles. Also, since June 25, 2021, Phase II of FAME India scheme was extended for a period of two years up to March 31, 2024.

The government on May 12, 2021, approved the Production Linked Incentive (PLI) Scheme for manufacturing of Advance Chemistry Cell (ACC) in the country in order to bring down battery prices. The drop in battery prices will result in cost reduction of EVs.