In keeping with the Government of India’s mission to reduce carbon emission in the country, 38 original equipment manufacturers (OEMs) or the electric vehicle manufacturers of e-2W (2 wheelers), e-3W (3 wheelers) and e- 4W (4 wheelers) have been registered under phase-II of FAME-India Scheme as on August 9, 2021. While over the last three years a total 5,17,322 electric vehicles have been registered in the country. The Ministry of Heavy Industries formulated a scheme Faster Adoption and Manufacturing of (Hybrid &) Electric vehicles in India (FAME India) Scheme in 2015 to promote the adoption of electric/ hybrid vehicles (xEVs) in the country.
The Minister of State for Heavy Industries Mr. Krishan Pal Gurjar informed that under Phase-II of FAME India Scheme is being implemented for a period of 5 years w.e.f. April 01, 2019, with total budgetary support of Rs. 10,000 crores. This phase focuses on supporting electrification of public & shared transportation and aims to support, through subsidies, 7090 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars, and 10 lakh e-2 Wheelers.
Under FAME-II scheme, the demand incentive for e-2W is increased to Rs. 15,000/KWh from Rs. 10,000/KWh with an increase in cap from 20 percent to 40 percent of the cost of a vehicle to increase adoption of e-2W. Further, the phase-II of FAME-India Scheme has been extended for a period of two years after March 31, 2022.
Apart from this, the government has taken up many initiatives to promote electric vehicles in the country including approval for Production Linked Incentive (PLI) schemes, drop-in battery prices, reduction in GST on electric vehicles, battery-operated vehicles to have green number plates, and the ministry has issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.