Question : Promotion of Electric Vehicles

(a) whether the Government has formulated any Phased Manufacturing Programme (PMP) to promote manufacturing of electric vehicles;

(b) if so, the details thereof;

(c) the names of the leading automobile manufacturers who have shown their interest in the domestic manufacturing of electric vehicles in the country;

(d) the financial assistance provided by the Government to the companies manufacturing such vehicles in the country; and

(e) the number of such initiatives taken?

Answer given by the minister

THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES
(SHRI ARVIND GANPAT SAWANT)

(a) & (b): Yes Sir, Department of Heavy Industry has notified a Phased Manufacturing Programme (PMP) to promote indigenous manufacturing of Electric Vehicles, its assemblies / sub-assemblies and parts / sub-parts / inputs of the sub-assemblies thereof vide Department’s communication no. 12(31)/2017-AEI dated 6th March 2019 (ANNEXURE-I).
Subsequently, another PMP for Electric/Hybrid (xEV) Parts for eligibility of vehicles to avail demand incentives under FAME Phase-II was issued on 29th April 2019 (ANNEXURE-II).

(c): So far, following seven (7) OEMs have shown their interest in the domestic manufacturing of electric vehicles in the country -
1. Tata Motors Ltd.
2. Mahindra Electric Mobility Ltd.
3. Kinetic Green Energy & Power Solutions Ltd.
4. Ampere Vehicles Private Ltd.
5. Okinawa Autotech Private Ltd.
6. Ather Energy Pvt. Ltd.
7. Jitendra New EV Tech Pvt. Ltd.

(d): As per FAME India Scheme, incentives are provided to the purchaser of electric vehicle as per scheme’s notification [ S.O. 1300 (E)] dated 8th March 2019, which is available in department’s website (www.dhi.nic.in).

(e): Various initiatives have been taken by the Government to promote electric mobility in the country. Some of them are summarized hereunder –

(i) Under new GST regime, the rates of GST on Electric Vehicles has been kept in the lower bracket of 12% (with no Cess) as against the 28% GST rate with Cess up to 22% for conventional vehicles.
(ii) Ministry of Power has allowed sale of electricity as ‘service’ for charging of electric vehicles. This would provide a huge incentive to attract investments into charging infrastructure.
(iii) Ministry of Road Transport Highways issued notification regrading exemption of permit in case of battery operated vehicles.

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