Electric Vehicle revolution powers ahead with Rs. 5,228 Cr. subsidy boost
The Ministry of Heavy Industries (MHI) has provided a significant subsidy of Rs. 5,228.00 crore to electric vehicle manufacturers, resulting in the sale of 11,53,079 electric vehicles by December 1, 2023. Under the FAME India Phase II Scheme, MHI has sanctioned 6862 electric buses, with 3487 buses already supplied to State Transport Undertakings (STUs).
The scheme, spanning five years from April 1, 2019, focuses on supporting public and shared transportation electrification, aiming to incentivize 7090 eBuses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars, and 10 lakh e-2 Wheelers. Additionally, Rs. 800 Cr. has been allocated as capital subsidy to Oil Marketing Companies for establishing 7,432 electric vehicle charging stations. The FAME-India Scheme phase-II prioritizes consumer incentives, with Rs. 3,815 crore already disbursed out of Rs. 5,094 crore in claims submitted.
Under Phase-II, there’s no provision for the manufacturing capacity of advanced chemistry cells, but a separate Production Linked Incentive (PLI) Scheme for ‘Advanced Chemistry Cell (ACC) Battery Storage’ with a budgetary outlay of Rs. 18,100 crore has been approved by the government. The scheme is monitored through compliances, vehicle testing, and an Inter-Ministerial Empowered Committee, “Project Implementation and Sanctioning Committee (PISC),” ensuring efficient implementation.
