The Indian Central Government is actively implementing the second phase of the FAME program, which aims to accelerate the production and transition of electric vehicles in India. The scheme aims to improve electric technology in transport, lessen dependence on fossil fuels, and reduce carbon emissions. Specifically, the program subsidizes public transport or commercially used electric buses, electric three-wheelers, electric four-wheelers, and privately owned electric two-wheelers.
In the second phase of the FAME scheme, 7,090 electric buses, 5 lakh electric three-wheelers, 55,000 four-wheeler electric cars, and 10 lakh electric two-wheelers are proposed to be subsidized. Moreover, the government is providing funding of Rs 25,938 crore under the Productive Incentive Scheme for developing technologies for electric vehicle components.
The government has also allocated Rs 18,100 crore under the Productive Incentive Scheme to promote battery production for electric vehicles. Furthermore, there have been recent incentives for the use of electric vehicles in India, including a reduction of goods and service tax from 12 percent to 5 percent and the exemption of electric vehicles from road tax.
Krishan Pal Gurjar, Minister of State for Heavy Industries, provided this information to the Lok Sabha in a written reply.
Delhi: The Central Government is actively implementing the second phase of the FAME program to accelerate production and transition to electric vehicles in India.
The scheme is implemented to improve electric technology in transport, reduce dependence on fossil fuels and reduce carbon emissions. In respect of electric buses, electric three-wheelers and electric four-wheelers, vehicles used for public transport or commercial use are subsidized under the scheme. Subsidy is provided for electric two-wheelers and privately owned vehicles.
7,090 electric buses, 5 lakh electric 3-wheelers, 55,000 four-wheeler electric cars and 10 lakh electric two-wheelers are proposed to be subsidized under the second phase of FAM scheme.
Funding of Rs 25,938 crore is being provided under the Productive Incentive Scheme for development of technologies related to components for electric vehicles.
The government has approved an allocation of Rs 18,100 crore under the Productive Incentive Scheme to promote battery production for electric vehicles.
Incentives for two-wheelers have been increased from 11 June 2021. Goods and service tax on electric vehicles has been reduced from 12 percent to 5 percent. The Ministry of Road Transport has directed the states to exempt electric vehicles from road tax. Similarly, the central government has taken several other measures to promote the use of electric vehicles.
Minister of State for Heavy Industries Krishan Pal Gurjar has given this information in a written reply in the Lok Sabha.