The National Electric Mobility Mission Plan (NEMMP) 2020 is a National Mission document providing the vision and the roadmap for the faster adoption of electric vehicles and their manufacturing in the country. This plan has been designed to enhance national fuel security, to provide affordable and environmentally friendly transportation and to enable the Indian automotive industry to achieve global manufacturing leadership as per information available from PIB.
As part of the NEMMP 2020, Department of Heavy Industry
formulated a Scheme viz. Faster Adoption and Manufacturing of (Hybrid &)
Electric Vehicles in India (FAME India) Scheme in the year 2015 to promote
manufacturing of electric and hybrid vehicle technology and to ensure
sustainable growth of the same.
The Phase-I of this Scheme was initially launched for a
period of 2 years, commencing from 1st April 2015, which was subsequently
extended from time to time and the last extension was allowed up to 31st March
2019. The 1st Phase of FAME India Scheme was implemented through four focus
areas namely (i) Demand Creation, (ii) Technology Platform, (iii) Pilot Project
and (iv) Charging Infrastructure. Market creation through demand incentives was
aimed at incentivizing all vehicle segments i.e. 2-Wheelers, 3-Wheelers Auto,
Passenger 4-Wheeler vehicles, Light Commercial Vehicles and Buses.
The demand incentive was available to buyers of electric
& hybrid vehicle (xEV) in the form of an upfront reduced purchase price to
enable wider adoption. Also, grants were sanctioned for specific projects under
Pilot Projects, R&D/Technology Development and Public Charging
Infrastructure components under the scheme. In the 1st phase of scheme, about 2.78
lakh xEVs were supported with a total demand incentives of Rs. 343 Crore
[Approx]. In addition, 465 buses were sanctioned to various cities/states under
Under the NEMMP 2020, there is an ambitious target to
achieve 6-7 million sales of hybrid and electric vehicles by the year 2020.
Based on the experience gained in the Phase-I of FAME India Scheme, it has been
observed that sufficient number of charging infrastructure is required to
achieve expected outcome of the plan, which is being addressed presently in
Phase-II of FAME Scheme.
Department of Heavy Industry notified Phase-II of the
Scheme, vide S.O. 1300(E) dated 8th March 2019, with the approval of Cabinet
with an outlay of Rs. 10,000 Crore for a period of 3 years commencing from 1st
April 2019. The main objective of the scheme is to encourage faster adoption of
electric and hybrid vehicle by way of offering upfront incentive on purchase of
electric vehicles and also by establishing the necessary charging
infrastructure for electric vehicles. Details of the scheme is available in
Department’s website (www.dhi.nic.in).
Various initiatives have been taken by the Government to
promote electric mobility in the country. Some of them are summarized
(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
(iii) Ministry of
Road Transport Highways issued notification regarding exemption of permit in
case of battery operated vehicles.
(iv) Issue of Expression of Interest (EoI) for deployment of
5000 electric buses by State Transport Departments/Undertakings etc.