Year-End Review 2023: Ministry of Heavy Industries: Rs. 5,228 crore Subsidies given to incentivize 11.53 lakh Electric Vehicles
New Delhi:During 2023, the Ministry of Heavy Industries has taken a lot of efforts in the field of faster Adoption and Manufacturing of Electric Vehicles in India Phase II Scheme.The Government is committed to provide clean and green public transport and is implementing the Phase-II of the Faster Adoption and Manufacturing Electric Vehicles (FAME-II) scheme with the aim to reduce dependence on fossil fuel and to address the issue of vehicular emissions.
The Scheme had an outlay of Rs. 10,000 crores over a Five years’ period from 01/04/2019. The proposal for enhancement of outlay of “Faster Adoption and Manufacturing of Electric Vehicles in India Phase II” from Rs. 10,000 crores to Rs. 11,500 crores has been examined by Department of Expenditure (DoE) and approved considering the objectives of the Scheme. This phase mainly focuses on supporting electrification of public & shared transportation, and aims to support through demand incentive e-vehicles including e-buses. In addition, creation of charging infrastructure is also supported under the Scheme.Under Phase II of FAME India Scheme, subsidy amounting to Rs. 5,228 crore has been given to electric vehicle manufacturers on sale of 11,53,079 numbers of electric vehicles as on 01.12.2023.Under FAME – II as on date, various STU’s/CTU’s/ Municipal corporations have placed Supply Orders for 3390 e-buses against quantities sanctioned by MHI. Out of those, 3037 e-buses have been deployed till now. Further, another 3,472 e-buses case is being dealt through Convergence Energy Services Ltd. (CESL) under the aggregation model of NITI Aayog. Out of these 3,472 e-buses, 454 electric buses have been deployed. Thus, under FAME-II scheme, a total of 3390+3472=6862 e-buses will be eventually deployed in the various States.
Electric Vehicle Charging Stations:
A total of 148 EV Public Charging Stations (PCS) have been commissioned. On 28.3.2023 MHI announced sanction of Rs.800 crores under FAME II to the PSU Oil Marketing Companies (OMC) – Indian Oil (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) – for setting up 7432 public fast charging stations across the country.Production-Linked Incentive (PLI) Scheme for Automobile and Auto Components.With the aim to enhance India’s manufacturing capabilities and exports in the automobile and the automobile components sector, government approved a ‘Production-Linked Incentive (PLI) Scheme’ for this sector with a total outlay of Rs. 25,938 crores over a period of 5 years. The PLI Scheme proposes financial incentives to boost domestic manufacturing of ‘Advanced Automotive Technology’ (AAT) products and attract investments in the automotive manufacturing value chain. Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of Advanced Automotive Technology products. It will also generate employment. This scheme will facilitate the Automobile Industry to move up the value chain into higher value-added products. 18 companies under ‘Champion OEM’ category and 67 companies under ‘Component Champion’ category, approved under the Scheme, are implementing the PLI Auto Programme. Total estimated investment to be made by the implementing firms is to the tune of Rs. 67,690 crores. Standard Operating Procedure (SOP) for certification of Domestic Value Addition (DVA) has also been prepared and shared with approved PLI applicants on 27.4.2023. Total investment of Rs. 11,958 crores have been reported till Q2 of FY 2023-24. Tata Motors and M&M have been issued Advanced Automotive Technology (AAT) and Domestic Value Addition (DVA) certificates.
GST Concession Certificate
Issue of GST Concession Certificate to orthopedically disabled persons is one of the important services provided by MHI under its Citizen’s Charter. As a step towards Digital India, an online portal for issuing Aadhar Authenticated GST concession certificate was launched by MHI in November 2020. Setting up of four New Advanced Centres of Excellence and augmentation of Existing Centres of Excellence;Promotion of skilling in Capital Goods Sector–creation of Qualification packages for skill levels 6 and above;
Setting up of four Common Engineering Facility Centres (CEFCs) and augmentation of existing CEFCs;Augmentation of Existing Testing and Certification Centres;Setting up of ten Industry Accelerators for Technology Development
A total of 32 projects with total project cost of Rs. 1363.78 crores (due to higher contribution by Project Implementing Organizations) have been sanctioned so far under the Phase-II of the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector and Rs.232.17 crores have already been released for the approved projects so far under the Phase-II of the Scheme.Prime Minister Shri Narendra Modi, on 24th March, 2023, laid foundation stone of Centre of Excellence (CoE) on Machine Tools Design at IIT-BHU in collaboration with HMT funded by MHI under its scheme on ‘Enhancement of Competitiveness in the Indian Capital Goods Sector, Phase II’. In this CoE, IIT –BHU will develop the design of high-tech machine tools and create three new technologies, which are currently not available in the country. These techniques will be used in the fields of national defence, aerospace, power and energy sector, space technology, precision components machining etc. This CoE will help reduce imports of Rs.400 crore by the year 2030 and encourage domestic sourcing while making India self-reliant with a high degree of reliability and efficiency in design and development. This center will encourage startups and skill development and will also prove helpful in technical education and employment generation.Dr. Mahendra Nath Pandey inaugurated and flagged off ‘The Green Plate EV rally’ organized by SIAM on 18th October 2023 in partnership with MHI at Bharat Mandapam, Pragati Maidan, New Delhi to showcase the advancements made by the Indian Automotive industry in the area of Electrification and also spread awareness and increase confidence among the customers on the excellent quality EV products available in the Indian market.
