e Administration of the scheme, including publicity and IEC (information, education & communication)
activities

Demand incentives:

Year-wise breakup of fund allocation for FAME Phase-II (INR crore):

Head

  

 

 

 

‘Demand incentives 822 4,587 3,187 8596

Charging infrastructure 300 400 300 1000

Admin (publicity/ ICE) 12 i \13 38 |
| Total for FAME-II 1,134 5,000 3,500 (9,634 |
‘Committed expenditure of Phase-I 366 0 o 366

‘Total 1,500 |5,000 (3,500 |10,000

 

 

Source: DHI, CRISIL Research

While bulk of the outlay is planned as demand incentives, these will be largely limited to passenger vehicles
including buses. The categories eligible for demand incentives are:

e Buses (only EV technology)

e  Four-wheelers (EV, plug-in hybrid or PHEV and strong hybrid or SHEV)

e  Three-wheeler (electric) including registered e-rickshaws

e¢ Two-wheelers (electric)

GST rate for EVs is 5% compared with 28-50% for conventional vehicles. However, with higher prices in most
categories, the absolute amount of tax is not sharply lower. The inverted duty structure on batteries drawing 28%
GST is offset by GST credits when sold with the vehicle. Some states offer lower vehicle registration charges for
EVs. Cities can also access funds from the Green Mobility Fund and Smart City Missions to promote green

transportation.

Demand incentives under FAME II:

 

 

 

ire) E Post subsi

| Tata Tigor EV 12,16,175 / 1,62,000 10,54,175
Mahindra Treo 3,32,000 64,200 2,67,800

| Ather 450 1,33,658 | 26,732 1,06,926

 

 

Source: FAME, CRISIL Research estimates

Charging infrastructure:

The scheme seeks to support setting up of adequate public charging infrastructure to instill confidence among EV
users. The infrastructure will be established through active participation of various stakeholders including
government agencies, industries, and public sector enterprises (PSEs). Of the total outlay for FAME Phase-II,
10% is for setting charging infrastructure as per norms specified by the Ministry of Power. Private companies can
partner with PSEs to bid for projects to install chargers.

In addition, for electric buses, it is proposed the buyer will be provided one slow charger per vehicle and one fast
charger for every 10 buses funded under the scheme.

In Phase-I, the government had sanctioned 520 charging stations. Under Phase-II, the number is about 2,900.
These will be installed in major cities and the estimated cost is a little over Rs 500 crore. Of the total, about 1,800
will be fast charging stations and 1,100 will be slow charging stations. About 1,000 of these are to be set up in
metros with 4 million-plus population and majority of the balance proposed stations will be in about 62 cities with
million-plus population. Slow chargers are suited for two-wheelers, three-wheelers and four-wheelers with smaller

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