Ministry of Heavy Industries Gives Rs. 564 Cr Incentive to 1.65 Lakhs Electric Vehicles

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In a written reply by the Minister of State for Heavy Industries, Shri Krishan Pal Gurjarin Lok Sabha informed today that Ministry of Heavy Industries( MHI), under Phase-II of FAME India Scheme, supported about 1.65 lakhs Electric Vehicles as on 25/11/2021, by way of Demand Incentive amounting to about Rs. 564.00 Cr.

Further, 6,315 electrical buses have been sanctioned to various State/City Transport Undertakings under Phase-II of the Scheme.

Ministry has also sanctioned 2,877 Electric Vehicles (EVs) Charging Stations amounting to Rs 500 Crore (Approx.) in 68 cities across 25 States/UTs and 1576 charging stations amounting to Rs. 108 crores (approx.) across 9 Expressways and 16 Highways under FAME India (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) Scheme Phase II.

As per the Society of Indian Automobile Manufacturers (SIAM) report, the Auto industry generates employment of 13 persons for each truck, 6 persons for each car and four persons for each three wheelers and one person for two-wheelers.

MHI formulated a Scheme namely Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles India (FAME-India) Scheme in March, 2015 to promote adoption of electric/ hybrid vehicles (xEVs) in India. Phase- l of the scheme wasavailable up to 31stMarch, 2019. The Scheme had four focus areas, namely, Demand Creation, Pilot Project, Technology Development/R&D and Charging Infrastructure.

Based on the outcome and experience gained during Phase-I of FAME India Schemeand after having consultations with all stakeholders, including Industry and industry Associations, the Government notified Phase-II of FAME India Scheme on 8th March, 2019, which is for a period of 5 years w.e.f. 01st April, 2019 with a total budgetary support of Rs. 10,000 crores.

This phase focusses 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-2Wheelers.In addition, creation of charging infrastructure is also supported to address range anxiety among users of electric vehicles.

In the First Phase of the Scheme, about 2.8 lakh hybrid and electric vehicles were supported by way of demand incentive, amounting to about Rs 359 crore. MHI had also sanctioned 425 electric and hybrid buses to various cities in the country with total cost ofabout 280 Crores. The Ministry of Heavy Industries had sanctioned about 520 Charging Stations/ Infrastructure for Rs. 43 Crore (approx.) under Phase-I of FAME India Scheme.

Further, specific projects under Pilot Projects, R&D / Technology Development and Public Charging Infrastructure components were sanctioned by the Project Implementation & Sanctioning Committee (PISC) for extending grant under the different focus areas of the scheme.

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