Gujarat rolls out EV policy with sops for buyers, setting up charging infra

The policy provides for a subsidy of up to `20,000 for two-wheelers, `50,000 for three-wheeler and `1.5 lakh for four-wheelers. It will provide an exemption from vehicle registration fees for EVs.

By:June 23, 2021 8:41 AM
It is a fact that is not easy to do business in India and the government must try and address the many issues, among them, red tape and poor infrastructure.It is a fact that is not easy to do business in India and the government must try and address the many issues, among them, red tape and poor infrastructure.

The Gujarat government on Tuesday rolled out its first electric vehicle (EV) policy for the next four years, offering subsidies and capital incentives to EV buyers and for setting up charging infrastructure. Announcing the policy in line with the National Electric Mobility Plan, Chief Minister Vijay Rupani said the state government is targeting to have around two lakh EVs on the road in Gujarat by 2025, including 1.25 lakh two-wheelers, 75,000 three-wheelers and 20,000-plus four-wheelers.

“With the adoption of EVs, the state government aims to reduce its carbon footprint by six lakh tonne per year. Besides, there would be savings of `5 crore per year on fossil fuel,” the chief minister said.

He said the policy focuses on achieving four key objectives: bringing down pollution by reducing use of conventional fuel, drawing investments in the electric automotive space, encouraging start-ups, and making Gujarat a hub for production of EVs and batteries.

The policy provides for a subsidy of up to `20,000 for two-wheelers, `50,000 for three-wheeler and `1.5 lakh for four-wheelers. It will provide an exemption from vehicle registration fees for EVs.

Gujarat will provide the highest subsidy on EV purchases compared to any other state, Rupani said. Gujarat’s subsidy for EVs stands at `10,000 per kilowatt. The subsidy amount will directly be credited to buyers’ bank accounts.

The policy also focuses on charging infrastructure, offering a capital incentive up to `10 lakh or 25% capital subsidy to set up charging stations.

“Already, 250-plus charging stations have been sanctioned by the state government. We are aiming to add at least another 250 charging stations in the next four years. The state government wants EV charging infrastructure similar to fossil fuels in coming years. Highway hotels, petrol pumps and dedicated charging complexes will be encouraged to participate in setting up such charging infrastructure,” the chief minister said.

The policy also has a provision for an incentive to set up charging infrastructure in new residential and commercial real-estate schemes. Petrol pumps will also be given permission to start charging stations on a priority basis.

The subsidies and incentives will cost the state exchequer `870 crore over the coming four years. The chief minister has assigned the responsibility to implement the policy to the state port and transport department.

At present, there are around 2,000 EVs on Gujarat roads, but the state government expects the policy to lead to an EV ecosystem right from sales to financing, servicing, charging and driving training, which would generate new opportunities for employment, Rupani said.

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