₹870-cr. fillip to electric vehicles in Gujarat

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

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

The policy was announced by Chief Minister Vijay Rupani who stressed on creating necessary infrastructure like setting up of charging stations to encourage people to switch from conventional vehicles using fossil fuel to battery-powered vehicles which drastically help in improving clean air in the cities.

Around 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 Gujarat CM said. While Delhi, Maharashtra, Kerala and Bihar have rolled out subsidy schemes, other States have provided tax reliefs.

“The EV policy will be in force for four years. We also want to promote EV usage and Gujarat as a destination for the production of EVs. We are aiming to cut 6,00,000 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.

The subsidy will be provided for private and commercial vehicles and will be in addition to the subsidy available under the Centre’s FAME-II scheme for EVs. Besides, registration will be free. The per kilowatt subsidy will be double of that available in any State, the government claimed.

So far, 278 charging stations, mostly on highways, have been approved and 250 more are planned soon 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 policy outlines clear adoption strategies, especially in the last mile mobility segment. The fiscal benefits will directly benefit the end customer while the non-fiscal benefits will help develop the overall EV ecosystem,” said Mahesh Babu, CEO, Mahindra Electric Mobility Ltd.

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Printable version | Jul 24, 2021 1:51:01 AM |

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