By: ICN Bureau
Last updated : December 12, 2022 9:31 am
Total outlay of Rs. 54,038 crore has helped faster adoption of electric vehicles in India, says Union Minister of State for Heavy Industries, Krishan Pal Gurjar in a written reply to a question in Rajya Sabha
To promote the use of electric vehicles in the country and to make their manufacturing cost effective, three schemes - Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India), PLI Scheme for automotive sector, and PLI Scheme for Advanced Chemistry Cell (ACC) have been formulated by the Ministry of Heavy Industries, says Union Minister of State for Heavy Industries, Krishan Pal Gurjar in a written reply to a question in Rajya Sabha.
The Government notified Phase-II of FAME India Scheme initially for a period of three years commencing from 1st April, 2019 with a total budgetary support of Rs. 10,000 crore. The Scheme was extended for a further period of 2 years up to 31st March, 2024. 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. 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 the 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.
Production Linked Incentive (PLI) Scheme for Automotive Sector: The Government on 15th September, 2021 approved the PLI Scheme for Automotive Sector with a budgetary outlay of Rs. 25,938 crores. Electric vehicles are covered under this PLI scheme.
PLI Scheme for Advanced Chemistry Cell (ACC): The Government on 12th May, 2021 approved PLI Scheme for manufacturing of ACC in the country with a budgetary outlay of Rs. 18,100 crore. The scheme envisages establishing 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.