FAME II focuses on electrification of public transport, new charging stations, tax cuts: Javadekar

New Delhi: The Minister of Heavy Industries & Public Enterprises, Prakash Javadekar stated in the Rajya Sabha today that the Department of Heavy Industry (DHI) is administrating Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles -FAME Scheme for promotion of adoption of electric/hybrid vehicles (xEVs) in India since April 2015.

The Phase-I of the Scheme was extended from time to time and the last extension was allowed till 31 March 2019.

Presently, Phase-II of FAME India Scheme is being implemented for a period of 3 years from April 2019 with total budgetary support of Rs 10,000 crore. This phase will mainly focus on supporting electrification of public and shared transportation and aims to support through subsidies approximately 7,000 e-buses, 5 lakh e-3 wheelers, 55,000 passenger EVs and 10 lakh e-bikes.

With greater emphasis on providing affordable & environment-friendly public transportation options for the masses, the scheme will be applicable mainly to vehicles used for public transport or those registered for commercial purposes in e-3W, e-4W and e-bus segments. However, privately owned registered e-2W will also be covered under the scheme as a mass segment.

In the First Phase of the Scheme, about 2.8 lakh hybrid and electric vehicles are supported by way of demand incentive amounting to about Rs 359 crore. Further, DHI sanctioned 425 electric and hybrid buses to various cities in the country with a total cost of about 300 Crores. Out of 425 electric and hybrid buses, about 417 buses are plying on the road. 

The DHI also sanctioned about 500 charging stations/ Infrastructure for Rs 43 Crore (approx.) in cities like Bangalore, Chandigarh, Jaipur and NCR of Delhi under Phase-I of FAME-India Scheme.

Under Phase-II of the Scheme, about 10,000 EVs are supported by the way of Demand Incentive amounting to about Rs 27 crores. Further, 5,595 electrical buses amounting to Rs 2,800 Crore (approx.) Government incentive is sanctioned to various states (City Transport Undertakings) under Phase-II of the Scheme.

DHI has also sanctioned 2,636 Electric Vehicles (EVs) amounting to Rs 500 Crore (Approx.), and charging stations in 62 cities across 24 States/UTs under the scheme.

Adoption of EVs is facing roadblocks due to lack of charging stations. In the last 10 months, about 11,000 EVs have been purchased by consumers under FAME-II Scheme and efforts of DHI in the establishment of charging stations are resulting in an increase in the sale of EVs.

Under the new GST regime, GST on EVs is reduced from the existing 12% rate to 5% as against the 28% GST rate with Cess up to 22% for conventional vehicles. Ministry of Power has allowed sale of electricity as a service for charging of electric vehicles. This will provide a huge incentive to attract investments into charging infrastructure.

The Government has granted exemption to the Battery Operated Transport Vehicles and Transport Vehicles running on Ethanol and Methanol fuels from the requirements of permit. The Government has also proposed exemption of registration fees for battery operated/electric vehicles to promote the use of eco-friendly vehicles in the country.

In the budget of 2019-20, it was announced that additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles would be provided.

This information was given by the Minister of Heavy Industries & Public Enterprises, Prakash Javadekar, in a written reply in the Rajya Sabha today.

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The ID Staff

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