Magazine

Last edition
October 2024

Home › Policies & Regulations ›Government Initiatives Propelling EV Manufacturing and Adoption in India

Government Initiatives Propelling EV Manufacturing and Adoption in India

The Minister of State for Heavy Industries, Krishan Pal Gurjar, shared these impactful initiatives in a written reply in Lok Sabha.

December 06, 2023. By Abha Rustagi

The Central Government has taken bold steps to boost domestic manufacturing of electric vehicles (EVs) and reduce the country's dependence on imports. With a comprehensive approach, several initiatives have been rolled out to propel the growth of the EV sector in India.

The Minister of State for Heavy Industries, Krishan Pal Gurjar, shared these impactful initiatives in a written reply in Lok Sabha.

The Production Linked Incentive (PLI) Scheme for the Automobile and Auto Components Industry, approved by the government with a substantial budgetary outlay of INR 25,938 crores over five years, is a pivotal measure to enhance domestic manufacturing of Advanced Automotive Technology products.

Additionally, a PLI scheme for Advanced Chemistry Cell (ACC) manufacturing aims to bring down battery prices and reduce dependency on imports.

Under the FAME India Scheme Phase-II, a Phased Manufacturing Programme (PMP) has been introduced to promote domestic manufacturing of EVs and related components, thereby increasing domestic value addition.

This scheme targets the electrification of public and shared transportation, offering subsidies for 7,090 e-Buses, 500,000 e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars, and 1 million e-2 Wheelers, along with support for charging infrastructure.

To encourage EV adoption, the government has implemented various measures, including incentives for buyers under Phase-II of FAME-India Scheme. The incentives, linked to battery capacity, aim to reduce the upfront purchase price of electric vehicles significantly.

Furthermore, the reduction of GST on electric vehicles from 12 percent to 5 percent and on chargers/charging stations from 18 percent to 5 percent provides a favorable environment for consumers.

The Ministry of Road Transport and Highways has announced green license plates for battery-operated vehicles and exemptions from permit requirements. Moreover, states are advised to waive road tax on EVs, further reducing the initial costs.

In a bid to address key barriers in EV adoption, the Ministry of Power issued guidelines and standards for public EV charging infrastructure. These guidelines focus on creating affordable tariffs, enabling home and office charging, and introducing a revenue-sharing model for land provision at promotional rates.

Tags:

Policies & Regulations

Ministry of Road Transport and Highways

ACC manufacturing

Production Linked Incentive

FAME India Phase II Scheme

FAME scheme

Ministry of Power