The establishment of three programmes to encourage the development of electric and hybrid vehicles in India was announced in the Lok Sabha by Minister of State for Heavy Industries Krishan Pal Gurjar. With a budget of Rs. 10,000 crore for five years beginning on April 1, 2019, the first programme is the Faster Adoption and Manufacture of Electric Vehicles in India Phase II (FAME India Phase II).
This programme offers financial assistance to owners of privately owned e-2Ws as well as e-buses, e-3Ws, and e-4Ws utilised for commercial or public transportation.
In addition to 7,090 e-buses, 5 lakh e-3Ws, 55,000 e-4W passenger vehicles, and 10 lakh e-2Ws, the FAME II programme seeks to support the manufacture of these vehicles. With a budget of Rs. 25,938 crore, the second programme is the Production Linked Incentive (PLI) Program for the Automotive and Auto Component Industries. It offers financial incentives for home production of high-tech automotive products, including electric vehicles and the parts that go into them. With a budget of Rs. 18,100 crore, the third programme, the PLI Plan for Advanced Chemistry Cell (ACC) Manufacturing, encourages the construction of 50 GWh-capable gigascale ACC manufacturing facilities throughout the nation.
In addition, the government has increased the consumption incentive for electric two-wheelers and decreased the GST on electric vehicles and charging stations, among other measures, to encourage the adoption of electric vehicles. In order to lower the initial cost of electric vehicles, the Ministry of Road Transport and Highways has recommended that states waive road taxes on EVs and declared the exemptions of battery-operated vehicles from permission requirements and the issue of green licence plates.
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