To Boost Electric Mobility, Government offers Subsidy

To Boost Electric Mobility, Government offers Subsidy
August 18, 2022

Keeping in view the climate change commitments made by the Government of India during the COP21 Summit held at Paris to reduce emission intensity by 33- 35% by 2030 from 2005 levels, it is relevant to introduce alternative means in the transport sector which can be coupled with India’s rapid economic growth, rising urbanization, travel demand and country’s energy security. Electric mobility presents a feasible alternative in addressing these challenges when accumulated with reasonable pricing solutions, advanced technology and supporting infrastructure.

National Electric Mobility Mission Plan:

Under National Electric Mobility Mission Plan (NEMMP), the government is targeting to achieve 6-7 million sales of electric and hybrid vehicles in India by 2020. NEMMP aims to achieve national fuel security by promoting hybrid and electric vehicles in the country.

National Electric Mobility Mission is a composite scheme using different policy-levers such as:

●     Demand-side incentives to facilitate the acquisition of hybrid/electric vehicles.

●     Promoting R&D in technology including battery technology, power electronics, motors, systems integration, battery management system, testing infrastructure, and ensuring industry participation in the same.

●     Promoting charging infrastructure.

●     Supply-side incentives.

●     Encouraging retro-fitment of on-road vehicles its hybrid kit.


Government has approved Phase-II of FAME Scheme with an outlay of Rs. 10,000 Crore for a period of 3 years commencing from 1st April 2019. Out of total budgetary support, about 86 percent of the fund has been allocated for Demand Incentive so as to create demand for xEVs in the country. This phase aims to generate demand by way of supporting 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers.

Steps Taken by Government for Faster Adoption of Electric Vehicles

●     A tax cut has been announced on the loan amount taken for the purchase of electric vehicle in India.

●     GST rates on electric vehicles have been slashed from the earlier 28% with cess to 12% with no cess.

●     The sale of electricity has been allowed as a 'Service' for the charging electric vehicles which is set to provide huge incentives in order to attract investments into charging infrastructure.

●     Ministry of Road Transport Highways issued notification regarding exemption of permit in case of battery-operated vehicles.

National Mission for Transformative Mobility and Battery Manufacturing:

India's Union Cabinet chaired by prime minister Narendra Modi has approved the 'National Mission on Transformative Mobility and Battery Storage', with a focus on local manufacturing across the whole supply chain for electric vehicles (EV) including battery and cell manufacturing.

The mission includes a five-year phased manufacturing program to set up "a few large-scale, export-competitive integrated batteries and cell-manufacturing Giga plants in India".

Though the government is trying out different initiatives to promote awareness amongst the mass on the adoption of electric vehicles. Availability of adequate Charging Infrastructure is one of the key requirements for accelerating the adoption of electric vehicles in India. Here is where goEgonetwork stands out to be the pioneer in promoting electric mobility aggressively.

From providing the right chargers to building a robust network with charging stations, we aim towards keeping your EV charged up while you shop, eat, work or relax. With our convenient charging solutions, we’re celebrating a greener world together.

So, let’s stay charged up!