Indian Economy News

Government approved Production Linked Incentive scheme for manufacturing of Advanced Chemistry Cell (ACC) to bring down prices of battery in the country

Phase-II of the FAME India Scheme is now being implemented for a period of five years, beginning on April 1^st, 2019, with the financial assistance of Rs 10,000 crores (US$1.32 billion). Furthermore, the development of charging infrastructure is encouraged in order to alleviate range anxiety among electric car drivers.

The e-vahan portal (Ministry of Road Transport and Highways), the detailed list of electric vehicles and total vehicles on roads, state/UT-wise is at ANNEXURE.                      

Further, following steps have been taken by the Government for adoption of electric vehicles in the country: 

• On May 12, 2021, the government authorised a Production Linked Incentive (PLI) plan for the manufacture of Advanced Chemistry Cells (ACC) in the nation in order to lower battery prices. Electric vehicles will become less expensive as battery prices fall.
• The Production Linked Incentive (PLI) plan for Automobile and Auto Components, which was authorised on September 15, 2021, with a budgeted allocation of Rs 25,938 crore (US$ 3.43 Billion) for a five-year term, covers electric vehicles.
• The GST on electric cars has been decreased from 12% to 5%, while the GST on electric vehicle chargers/charging stations has been reduced from 18% to 5%.
• Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.
• SMoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.
• State wise number of electric vehicles and total number of vehicle count:

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.