Note on Electric Vehicles(EV) in India

By March 10, 2021 No Comments
  • Department of Heavy Industry: Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India)
  • Department of Heavy Industry (“DHI”) had launched a scheme, namely Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (“FAME India”), for promotion of electric and hybrid vehicles with an outlay of INR 795 Crore. (Indian Rupees Seven Hundred and Ninety Five crores).
  • The Phase-I of the Fame India Scheme was initially launched for a period of 2 (two) years, commencing from 1stApril 2015, which was subsequently extended from time to time and the last extension was allowed up to 31st March 2019.
  • Based on the outcomes of Phase-I of FAME India Scheme and suggestions of various stakeholders including industry associations, DHI notified Phase-II of the Scheme, vide S.O. 1300 dated 8th March 2019,[1] with the approval of Cabinet with an outlay of INR 10,000 Crore (Indian Rupees Ten Thousand crores) for a period of 3 (three) years commencing from 1stApril 2019.
  • An Inter-Ministerial Empowered Committee “Project Implementation and Sanctioning Committee (PISC)” headed by Secretary (Heavy Industry) shall be constituted for overall monitoring, sanctioning and implementation of the scheme.
  • This committee will have the power to sanction assistance for projects under the scheme and modify parameters for various components and sub components of the scheme including their outlay depending on emerging requirements with the overall objective of enhancing the coverage of e-mobility. This committee will also be the competent authority to decide other scheme parameters for smooth implementation of the scheme as well as to resolve issues as may come during implementation.
  • The scheme is proposed to be implemented through the following verticals:
  1. Demand Incentives
  2. Establishment of network of Charging Stations
  3. Administration of Scheme including Publicity, IEC (Information, Education & Communication) activities.
  • DHI shall be the nodal Department in Government of India and shall be responsible for planning, implementation and review of the scheme. DHI shall be the nodal agency for addressing issued related to the guidelines and for removal of difficulties in the implementation of the scheme. DHI shall issue guidelines as and when necessary in order to meet such objectives of the scheme.
  1. Regulations issued by Ministry of Power: Charging Infrastructure for Electric Vehicles
  • In December 2018[2], the Ministry of Power announced a policy for the rollout of electric vehicle charging infrastructure. The Ministry has outlined several key facts, figures and a plan to support the expansion of electric vehicles in the country.
  • The above-mentioned regulations have been further revised and examined and in order to adopt some new suggestions, the Ministry has also issued the Charging Infrastructure for Electric Vehicles-Revised guidelines and standards vide notification dated 10th October, 2019.[3]
  • In the revised guidelines, private charging at residences/offices have been permitted.
  • Setting up of Public Charging Stations (“PCS”) shall be a de-licensed activity and any individual/entity is free to set up public charging stations provided that the stations satisfies all the performance standard and protocols laid down by the Ministry of Power and Central Electricity Authority (“CEA”) from time to time.
  • Charging Station/Chain of Charging Stations may also obtain electricity from any generation company through open access.
  • The revised guidelines have been further amended by notification dated 8th June 2020.[4]
  1. The Ministry of Power has also issued regulation regarding delicensing the sale of electricity at charging stations vide notification dated 13th April 2018.[5]
  • Under this regulation it is clarified that during the activity of charging of battery for use in electric vehicle, the charging station does not perform transmission, distribution or trading of electricity, hence the charging of batteries of electric vehicles through charging stations does not require any license under the provisions of the Electricity Act, 2003.
  1. The Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010 and the Central Electricity Authority (Measures relating to Safety and Electric Supply) (Amendment) Regulations, 2019[6] have also been issued by the CEA under the powers conferred under Section 177 of the Electricity Act, 2003. The amended regulations have further incorporated a separate chapter for Safety Provisions for Electric Vehicle Charging Stations.


  1. The Ministry of Housing and Urban Affairs (“MoHUA”) have also amended the Model Building Bye-Laws, 2016 (“MBBL 2016”) for providing the electric vehicle charging infrastructure.[7] The MBBL 2016 were amended to implement the long term vision of electric mobility during the next 30 (Thirty) years.


  1. With the various Central Government regulations in place, there are also different Electric Vehicles policies for different states. The same are summarized below:
S.No. State Features
1. Delhi

(Delhi Electric Vehicles Policy, 2020)[8]

The policy shall seek to drive rapid adoption of Battery Electric Vehicles (BEVs) so that they contribute to 25% (Twenty-five) of all new vehicle registrations by 2024 and bring about a material improvement in Delhi’s environment by bringing down emissions from the transport sector. The Policy will also seek to put in place measures to support the creation of jobs in driving, selling, financing, servicing and charging of Electric Vehicles.

To drive large scale adoption of Electric Vehicles and maximize reduction of vehicle pollution, the policy focuses attention on incentivizing the purchase and use of electric two wheelers and supporting the electrification of public/ shared transport and goods carriers.

2. Maharashtra The policy aims to increase the number of EVs registered in Maharashtra to 5 Lakhs (Five lakhs) and grab an investment of INR 25000 Crores (Indian Rupees Twenty five thousand crores) in EV manufacturing and component manufacturing, battery manufacturing/assembly enterprises and charging infrastructure equipment manufacturing in the state. The policy also offers incentives for the purchase of e-buses and buyers and end-users of private vehicles.[9]
3. Uttar Pradesh (Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2019)[10] The policy encourages the use of HEVs and plug-in EVs during the transition phase. It targets 2 lakh (200,000) charging (fast, slow and swapping) stations by 2024 and 1 Mn EVs on the road in all categories and 70% (Seventy) electric vehicles in public transport by 2030. The state offers incentives such as capital interest subsidy, infrastructure interest subsidy, industrial quality subsidy, exemption from stamp duty and electricity duty, SGST reimbursement etc. for EV manufacturing units – large, medium, small and micro alike. It also has a single window system in place for all approvals for EV and battery manufacturing units.


4. Gujarat (Gujarat State Draft EV Policy)[11] The objectives of the policy are: (i) To transition the State’s transportation sector towards electric mobility in phases; ii. Make Gujarat a manufacturing hub for EV and ancillary equipment; iii. Encourage investment in electric mobility; and iv. Job creation and research.
5. Karnataka (Karnataka Electric Vehicle and Energy Storage Policy 2017)[12] The policy mainly aims to create an environment that would attract investments of INR 31000 Crores (Indian Rupees Thirty One thousand crores) and also create employment opportunities for 55000 (Fifty-five thousand) people. It aims to make Karnataka the preferred destination for development of electric mobility and to develop human capital to meet the needs of the industry. Being one of the early policymakers, the state provides incentives like interest-free loans on the net SGST for EV manufacturing enterprises. Karnataka also plans to develop charging infrastructure as a commercially viable business venture that attracts private investment.
6. Haryana (Electric Vehicle Policy)[13] The policy targets to convert 100% of bus fleet owned by State Transport Undertakings in the state into electric buses (Battery Electric Vehicles or Fuel Cell Electric Vehicles) by 2029, with the first phase -2- of 100% conversion of bus fleet in Gurugram and Faridabad by 2024. The policy also targets to supply uninterrupted 24×7 quality power to all qualified EV related industries operating in the state. The State Govt. will also develop charging infrastructure as a commercially viable business venture in the state.


  1. Besides the states mentioned above, the following states also have a State EV policy in place, namely: Punjab, Bihar, Telengana, Tamil Nadu, Andhra Pradesh, Madhya Pradesh, Uttarakhand, Kerala.


  1. With respect to tax rates applicable to electric vehicles, the following rates shall apply[14]:
  • The GST rate on all electric vehicles be reduced from 12% to 5%.
  • The GST rate on charger or charging stations for Electric vehicles be reduced from 18% to 5%.
  • Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities be exempted from GST.















[14] The decisions were taken in the 36th GST Council meeting and the same shall be effective from 1st August 2019.

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