Maharashtra rolls out draft EV Policy 2021 for faster adoption, manufacturing

For a faster adoption of EVs, the Maharashtra government will give incentives like discounts, road-tax rebates, buyback guarantees and more. Priority will be given to public transport vehicles first.

By:July 14, 2021 9:08 AM
Maharashtra government to push for more EVs by 2025

Maharashtra government on Tuesday rolled out its draft Electric Vehicle (EV) Policy 2021 for faster adoption and manufacturing of EVs in the state. The objective of the policy is to bring 10% of all new registrations to EV by 2025, that is three lakh vehicles per year, with priority to public transport and mass transport vehicles.

The policy will be valid till March 31, 2025.

Aditya Thackeray, minister for environment and climate change in the Maharashtra government, told reporters in Mumbai, that the priority will be to first bring all the public transport — BEST, MSRTC buses, 3-wheelers and 2-wheelers under the EV fold, and later move towards the conversion of passenger vehicles.

Some of the other policy objectives include the creation of six targeted urban agglomerations in the state to achieve 25% electrification of public transport and last-mile delivery vehicles by 2025. The six urban centres are Greater Mumbai, Nashik, Pune, Solapur, Amravati, Aurangabad and Nagpur.

The State also aims to convert 15% of Maharashtra State Road Transport Corporation’s (MSRTC) existing bus fleet to electric by 2025. It also aims to establish at least one Gigafactory for the manufacturing of advanced chemistry cell (ACC) batteries in the state under the PLI scheme of the union government.

“The government will provide all demand-side incentives, road tax and registration rebates apart from providing the charging infrastructure in a radius of 3 km. The buyers will be incentivised on the purchase and will have the buyback guarantee on the vehicle as well as the batteries,” Thakare said. The policy also provides scrappage benefits to the owners, he said.

The two-wheelers will get a discount of around Rs 10,000 on the purchase, the three-wheelers will get Rs 30,000, the four-wheelers will get Rs 150,000, and the buses will get Rs 20 lakh benefit. However, there is a limit on the number of vehicles the government will incentivise during the period, like 100,000 two-wheelers and around 15,000 three-wheelers and 10,000 cars.

The penetration of battery electric vehicles in Maharashtra has remained low despite the support offered under the FAME India Scheme and the state EV policy. This is largely due to four critical barriers of the high upfront purchase price of EVs, lack of products comparable to conventional vehicles, inadequate public charging infrastructure, and low levels of awareness about EVs or their benefits.

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