Recently, the parliament was informed that to boost electric mobility, the government aims to support through subsidies about 62,000 electric passenger cars and buses, besides 15 lakh electric three- and two-wheelers.
Road Transport and Highways Minister Nitin Gadkari told the Lok Sabha that there will also be focus on creating electric charging infrastructure.
Phase-II of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme is being implemented with a total budgetary support of Rs 10,000 crore, he added.
“This phase focuses on supporting electrification of public & shared transportation and aims to support, through subsidies, approx. 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers.
He informed that all vehicles will continue to be registered as long as they meet the requisite safety and emission standards. As on February 8, 2021 a total of 98 electric vehicle models (32 two-wheelers, 50 three-wheelers and 16 four-wheelers) have been registered under FAME India Scheme Phase-II.
Presently GST on electric vehicles is 5 percent and a proposal for further reduction of tax on such vehicles is not under consideration.
Incentives are being provided to the purchasers of e-vehicles in the form of an upfront reduction in the purchase price.
“Further, the incentive is linked to battery capacity i.e. Rs. 10,000/KWh for e-2W, e-3W and e-4W,” he said.
Gadkari said his ministry has issued regulations and advisories to promote the use of electric vehicles to all states and Union Territories besides advisory regarding sale and registration of electric vehicles without batteries..
These include retro-fitment of hybrid electric system or electric kit to vehicles, “registration mark for Battery Operated Vehicles to be in Yellow colour on Green background for the transport vehicles and, for all other cases, in White colour on Green background” and “specifications for the grant of licence to age group of 16-18 years to drive gearless E scooters/ Bikes upto 4.0 KW.”
Other initiatives include exemption to battery operated transport vehicles and transport vehicles running on ethanol and methanol fuels from the requirements of permit.
