EV Policies and Subsidies of 13 States of India
Of the ample of other things 'Price' – that five-letter word has been one of the main impediments standing in the way of electric vehicles. That, combined with a lack of critical infrastructure, has meant India’s automobile sector has continued to rely mainly on the internal combustion engine. However, things are changing — with every passing day, electric vehicles are inching closer being within reach of common users, driven by India’s measures to encourage e-mobility.
Wait, what incentives?
The Central government provides subsidies under the national FAME-II programme, and individual state electric vehicle (EV) regulations make EVs even more inexpensive.
However, as each state has its own requirements for electric car subsidies, the benefits are more considerable in some locations, making EVs more accessible to the mass market.
The Indian market for electric vehicles an exemption from customs duty on EV parts as well as the Revised Special Incentive Package Scheme, which provides 20% capital subsidy to companies in special economic zones and 25% capital subsidy to those outside special economic zones (SEZs).
While breaking things down into its constituent parts makes it simpler to comprehend, let’s take a closer look at EV Policies and Subsidies of 13 States of India.
Maharashtra
The WoW Factor: If you plan to purchase an electric vehicle, you should know that it will be less expensive in Maharashtra than in any other state.
As the government of Maharashtra pledges to offer an incentive of Rs 5,000/kWh for all E-vehicle categories, it is clear that electric vehicles are the future.
The maximum subsidy offered is:
2 wheeler: Rs 10000,
3 wheeler: Rs 30000
4 wheeler: Rs 150000
Electric buses: Rs 20 lakh
Additional Perks:
If you trade in your old petrol two-wheeler, you will receive a Rs 7,000 subsidy towards the purchase of a new electric two-wheeler.
Maharashtra promises to offer incentives to the manufacturer if it provides a five-year battery warranty to its consumers.
On charging front MH gov is offering subsidies of Rs 5 lakhs
2. Gujarat
The WoW Factor: Gujarat is said to be the state with the largest subsidies.
The maximum subsidy offered is:
2 wheeler: Rs 20000
3 wheeler: Rs 50000
4 wheeler: Rs 1.5 lakh
Additional Perks:
The state has waived a few hundred rupees off the registration price.
On the charging front, the Gujarat government provides a maximum subsidy of Rs 10 lakh.
3. Delhi:
The WoW Factor: The Delhi government’s electric vehicle strategy, which was launched in August 2020 with a three-year framework, is one of the most comprehensive in the country.
The maximum subsidy offered is:
2 wheeler: Rs 15000
3 wheeler: Rs 30000
4 wheeler: Rs 1.5 lakh
Additional Perks:
Delhi offers monetary incentives ranging from Rs 5,000 to Rs 7,000, as well as road tax and registration fee exemptions for electric vehicles.
4. Rajasthan:
The WoW Factor: The state government of Rajasthan intends to promote the wider adoption of electric vehicles by offering early adopters rebates on the initial purchase price of EVs.
According to a statement issued by the Rajasthan Transport Department, the State Goods and Services Tax would be returned to EV users. In addition, they will get a one-time award.
Unlike other states, Rajasthan will pay consumers of electric vehicles a set rate based on the battery capacity of their vehicle.
The maximum subsidy offered is:
Electric two-wheeler
Up to 2 kWh ₹5,000
Up to 4 kWh ₹7,000
Up to 5 kWh ₹9,000
Over 5 kWh ₹10,000
Electric three-wheeler
Up to 3 kWh ₹10,000
Up to 4 kWh ₹15,000
Up to 5 kWh ₹17,000
Over 5 kWh ₹20,000
Additional Perks:
Additional incentives for the purchase of two- and three-wheeled electric vehicles.
5. Karnataka:
The WoW Factor: If you purchase an electric vehicle in Karnataka, you may be eligible for a subsidy through the FAME programme of the union government, which may be worth up to $15,000 per kWh.
Recently, the government of Karnataka announced the launch of an electric bike taxi system that permits aggregators like Rapido, Ola, and Uber to register as e-bike taxi operators.
The cabinet determined that investors in the electric vehicle (EV) industry will get a 15 percent capital subsidy on the value of fixed assets over five equal yearly instalments, with a maximum of 50 acres of land covered by this incentive.
6. Telangana
The WoW Factor: The state exempts all sorts of electric vehicles from road charges and registration fees.
However, the state does offer large supply-side incentives, such as a
1. Capital investment subsidy of up to Rs 30 crore
2. Annual SGST refund of up to Rs 5 crore
3. Reduction of electricity rates by up to Rs 5 crore
4. Maximum interest subsidy of Rs 5 crore
Additional Perks:
100 percent exemption of road tax and registration charge for initial purchases of electric vehicles.
7. Andhra Pradesh
The WoW Factor: The government of Andhra Pradesh intends to end the registration of gasoline and diesel automobiles. The government guarantees that all government automobiles will be changed into electric vehicles.
Additional Perks:
The AP Government has set the target of one hundred thousand slow and rapid EV charging stations by 2024.
8. Uttar Pradesh
The WoW Factor: The state government anticipates rolling out one million electric vehicles across all market categories by 2024.
Plans are for 1,000 electric buses to be deployed throughout the state by 2030.
Under the 10 designated green routes, 200,000 charging stations will be installed and a target of converting 70% of public transit to EVs by 2030 will be established.
Additional Perks:
The government also established a single-window approval mechanism for all EV and battery production facilities.
9. Madhya Pradesh
The WoW Factor: The government of Madhya Pradesh plans to include 2,200 electric buses into the public transportation system during the next four years.
Additional Perks:
Shared e-rickshaws and electrical auto rickshaws would get incentives such as exemption from road charges and a five-year rebate of parking fees at all municipal parking facilities.
The government intends to halt the registration of new internal combustion engines (ICEs) to foster EV’s
10. Bihar
The WoW Factor: The government emphasises the electrification of rickshaws by the year 2022.
Additional Perks:
The objective is to instal recharge stations every 50 kilometres along the roadway.
In Bihar, an additional incentive of Rs 7,000 per kWh is suggested for e-2Ws and e-3Ws using lithium-ion batteries instead of conventional lead-acid batteries.
These are innovative approaches to subsidy design that structure and distribute the subsidy so as to optimise its impact.
11. Tamil Nadu
The WoW Factor: The Tamil Nadu government has granted a total exemption from vehicle taxes for Electric Vehicles, wow isn’t it?
Several initiatives have been done to strengthen the state's electric car infrastructure.
Tamil Nadu plans to construct the nation's first park devoted exclusively to the electric vehicle production ecosystem.
Until December 2022, units that acquire land through a sale or lease will be eligible for a stamp duty exemption of 100 percent.
SIPCOT, SIDCO, and other government agencies will provide a 15% subsidy to units that acquire land from them.
If the investment is done in the southern regions, a 50 percent subsidy will be provided.
12. Kerala
The WoW Factor: The state aims to introduce one million electric vehicles by 2022 and 600 electric buses for public transportation by 2025.
Government fleet incentives, such as tax reductions, road tax exemptions, toll fee exemptions, free licences for fleet drivers, and free parking, should take precedence over EV component production.
13. Himachal
The WoW Factor: The government of Himachal Pradesh has proposed a new Electric Vehicle Policy for 2021, with the goals of promoting sustainable, safe, environmentally friendly, inclusive, and integrated transportation solutions and establishing itself as a model state for EV adoption among mountainous states.
By 2025, the primary objective is for battery electric vehicles (BEVS) to represent at least 15 percent of all new vehicle registrations.
In big cities and towns, at least one charging station would be constructed inside every 1km x 1km grid, and on state roads, at least one slow-charging station (on each side) would be constructed every 25km.
The Summary:
Delhi, Maharashtra, and Gujarat are three of the thirteen states with EV policies that have notified the federal government. Notably, as a result of the states supplementing the FAME II incentives of the Indian government, the upfront cost of electric vehicles in these states is decreasing by 50 to 65 percent, bringing them to parity with internal combustion engine vehicles. It’s pretty obvious to us, the future is electric, what do you think?
