Will support 62,000 e-cars, buses, e-bikes through subsidies: Gadkari

To boost electric mobility, the government aims to support through subsidies about 62,000 electric passenger cars and buses, besides 15 lakh electric three- and two-wheelers, Parliament was informed on Thursday.

The focus is also on creating electric charging infrastructure, Road Transport and Highways Minister Nitin Gadkari told the Lok Sabha in a written reply.

Phase-II of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme is being implemented with a total budgetary support of Rs 10,000 crore, he added.

"This phase focusses on supporting electrification of public & shared transportation and aims to support, through subsidies, approx. 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers.

"In addition, creation of charging infrastructure is also supported to address range anxiety among users of electric vehicles," the minister said.

Stressing that all vehicles will continue to be registered as long as they meet the requisite safety and emission standards, he said as per information from the Department of Heavy Industry (DHI), 98 electric vehicle models (32 two-wheelers, 50 three-wheelers and 16 four-wheelers) have been registered under FAME India Scheme Phase-II as on February 8, 2021.

He said presently GST on electric vehicles is 5 per cent and proposal for further reduction of tax on such vehicles is not under consideration.

Incentives are being provided to the purchasers of e-vehicles in the form of an upfront reduction in the purchase price.

"Further, the incentive is linked to battery capacity i.e. Rs. 10,000/KWh for e-2W, e-3W and e-4W," he said.

Gadkari said his ministry has issued regulations and advisories to promote the use of electric vehicles.

These include retro-fitment of hybrid electric system or electric kit to vehicles, "registration mark for Battery Operated Vehicles to be in Yellow colour on Green background for the transport vehicles and, for all other cases, in White colour on Green background" and "specifications for the grant of licence to age group of 16-18 years to drive gearless E scooters/ Bikes upto 4.0 KW."

Other initiatives include exemption to battery operated transport vehicles and transport vehicles running on ethanol and methanol fuels from the requirements of permit.

He said advisory has been issued to all states and Union Territories to promote use of electric vehicles, besides advisory regarding sale and registration of electric vehicles without batteries.