FAME India Scheme:
Under FAME-India Scheme, incentives are provided to buyers of electric vehicles in the form of an upfront reduction in the purchase price of electric vehicles.
- As per the information received from Department of Revenue, at present the GST rate on electric vehicles is 5%.
- The GST rates are prescribed based on the recommendations of the GST Council.
- Electric vehicles are already at the lowest rate slab of 5%.
- The Government on 12th May, 2021 approved a Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country in order to bring down prices of battery in the country.
- Drop in battery price will result in cost reduction of electric vehicles.
- GST on electric vehicles has been reduced from 12% to 5%; GST on chargers/ charging stations for electric vehicles 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.
- MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.
About FAME India scheme:
- FAME-India Scheme is implementing by Department of Heavy Industry in order to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same.
- FAME India is a part of the National Electric Mobility Mission Plan.
- Main thrust of FAME is to encourage electric vehicles by providing subsidies.
- FAME-India Scheme proposes to give a push to electric vehicles (EVs) in public transport and seeks to encourage adoption of EVs by way of market creation and demand aggregation.
- It is being implemented in two phases:
- Phase-I [Faster Adoption and Manufacturing of (Hybrid) & Electric Vehicles in India] from 1st April 2015.
- The Phase-II of the Faster Adoption and Manufacturing of (Hybrid) & Electric Vehicles.