The demand for electric vehicles is increasing rapidly in the country. In almost every state of the country, people are increasingly opting for electric vehicles instead of conventional fuel. Minister of State for Heavy Industries Krishan Pal Gurjar said in Rajya Sabha that at present 966,363 electric vehicles are on the roads across the country. In this race of electric vehicles, Uttar Pradesh has won, beating Delhi, Mumbai.
Krishna Pal Gurjar said that out of all these vehicles, about 276,217 vehicles are on the roads in Uttar Pradesh alone. An official statement has revealed that Uttar Pradesh has the highest number of Electric Vehicles (EVs) plying on the roads. After this, 132,302 electric vehicles are plying on the roads in the national capital Delhi. At the same time, states like Assam, Bihar, Karnataka, Maharashtra and Tamil Nadu are also included in the list of states with the highest EV.
Gurjar in his written reply in Rajya Sabha also informed that in order to promote the adoption of hybrid and electric vehicles in the country, the Government of India has taken steps for faster adoption and better manufacturing of (hybrid and) electric vehicles in the country (FAME India). The scheme was launched in the year 2015. Gurjar also mentioned that the GST on electric vehicles has been reduced from 12% to 5%. The GST on chargers/charging stations of electric vehicles has also been reduced from 18% to 5%.
The Modi government on May 12, 2021 had approved the Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cells (ACC) in the country to reduce the prices of batteries in the country. A fall in the price of batteries will reduce the cost of electric vehicles. The largest cost of the production cost of an electric vehicle is the cost of the battery itself.
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The second phase of the FAME India scheme is now being implemented for a period of 5 years with effect from April 01, 2019, with a total budgetary budget of Rs 10,000 crore. The Ministry of Road Transport and Highways (MoRTH) has also announced that battery-operated vehicles will be given green license plates and will be exempted from permit requirements.
Electric vehicles are covered under the Production Linked Incentive (PLI) scheme for automobiles and auto components, which was approved on September 15 with an outlay of Rs 25,938 crore for a period of five years. The purchase of electric vehicles has increased significantly due to the Fame to scheme by the government and the exemption given by the state governments under the Electric Vehicle Policy.