Gujarat to boost usage of electric vehicles

To boost usage of electric vehicles in the State, the Gujarat government on Tuesday announced a four-year policy with an outlay of ₹870 crore to provide subsidy on the purchase of non-polluting, battery-powered vehicles.

A subsidy of up to ₹20,000 on electric two-wheelers, up to ₹50,000 on electric three-wheelers and up to ₹1,50,000 on electric four-wheelers will be provided by the Gujarat government. The incentives offered are similar to those offered by Bihar but higher than those seen in Delhi, Maharashtra and Kerala.

The policy was announced by Chief Minister Vijay Rupani who stressed on creating necessary infrastructure such as the setting up of charging stations in order to encourage people to switch from conventional vehicles using fossil fuels to battery-powered vehicles, which drastically lowered emissions and help improve clean air in cities.

About 1,25,000 two-wheelers, 75,000 three-wheelers and 25,000 four wheelers will benefit from these subsidies, which will be based on per kilowatt hour of the vehicle, the Mr. Rupani added. While Delhi, Maharashtra, Kerala and Bihar have rolled out subsidy schemes for EVs, other States have provided tax reliefs on EVs.

“The EV policy announced today will be in force for four years. We want to promote EV usage as well as promote Gujarat as a destination for production of EVs. We are aiming to cut 600,000 tons of carbon emission and ₹5 crore worth of fuel cost through this policy every year. We will be providing subsidies for charging stations too,” the Chief Minister said during the policy announcement in Gandhinagar.

According to the details, the subsidy will be provided for private as well as commercial vehicles, and will be in addition to the subsidy available under Centre's FAME-II scheme for EVs. Besides, registration for EVs at regional transport offices (RTO) in Gujarat will also be free. With the new policy, the per kilowatt subsidy in Gujarat will be double of that available in any State, the state government claimed.

To set up infrastructure, the policy focuses on setting up charging infrastructure for electric vehicles in the State. So far, 278 charging stations, mostly on highways, have been approved. The State government is planning to add another 250 in near future with the rise of battery-operated vehicles.

“We thank the Gujarat government for notifying the new EV policy which is both progressive and comprehensive in nature. The outlay of ₹870 crore over the next 4 years will help EVs flourish in the State of Gujarat. The policy outlines clear adoption strategies, especially in the last mile mobility segment. The fiscal benefits being offered by the government will directly benefit the end customer while the non-fiscal benefits will help develop the overall EV ecosystem in the State,” said Mahesh Babu, CEO, Mahindra Electric Mobility Ltd.

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Printable version | Jul 30, 2021 12:48:02 AM |

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