Govt. Policies & Subsidies provided under FAME II, GST Reduction 18% to 5% on EV chargers and Incentives provided on Chargers helped India EV Charging Equipment Market Revenue grew almost at 23% by 2016- 2021, as per the findings by Ken Research.
1. FAME II primarily focuses on driving the electrification of public transportation and vehicles with lithium-ion or other advanced batteries.
The government has increased the budget allocation for FAME II by eight times compared to FAME I. FAME-II offers more upfront incentives for EV purchases. Demand incentives are provided to buyers in the form of a reduced upfront purchase price, which are reimbursed to OEMs by the central government. The primary focus is to increase localization and domestic manufacturing. The policy states that to be eligible for upfront incentives, OEMs have to ensure that at least there is: 40% localization for buses, 50% localization for 2Ws, 3Ws, and passenger cars.
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2. State EV policies have shown intent and ambition to deploy EVSEs with Incentives including capital subsidies on plants and equipment, discounted electricity.
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Capital Subsidy of 25% of the value of the charging station equipment for first 300 small, first 100 medium and first 100 large charging stations by Madhya Pradesh, Capital subsidy of 25% of equipment & machinery for DC Chargers for first 100 and 300 chargers—for chargers 100 V and up and below 100 V, respectively by Andhra Pradesh and Capital Subsidy of 25% of the value of the charging A subsidy of 25% or INR 10 lakhs, whichever is less, on the first 250 charging stations that will be set up near bus depots, petrol pumps, and public parking spots; steps taken by Maharashtra. Furthermore, Commercial public EV charging stations to be eligible for 25% capital subsidy on equipment/machinery (limited to INR 5 lakhs per station) for first 500 stations, issued by Bihar. These different favourable policies of different Indian states have set the path for the EV market to grow.
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