Recognizing the potential of electric mobility, Goa joined the league of states with EV policies by unveiling the ‘Goa Electric Mobility Promotion Policy, 2021’ on December 4. The policy will be applicable for a total of 5 yrs.

The policy aims to promote electric mobility in two, three & four-wheeler (passenger & commercial) segments, create 10,000 direct & indirect jobs in the state, encourage startups & investments, promote R&D and develop charging infrastructure.

Objectives Of The Policy:

1. To ensure 30% of annual vehicles registered in Goa be electric (starting from the year 2025).

2. To have a charging station at every 25 km on highways and every 3 km within city limits.

3. To ensure all two-wheelers involved in commercial activity switch to electric by 31 December, 2025.

4. To ensure 50% of all new buses procured for the state fleet be pure electric.

5. To make all new & renovated buildings ‘EV Ready’ by demarcating at least 20% parking spots with a charging framework installed.

6. To convert 50% of all ferries to electric by 2025.

7. To develop a publicly owned database of all charging stations & battery swapping stations.

8. To constitute a state electric vehicle board, establish a dedicated EV cell and create awareness about EVs and the policy.

9. To create a ‘State EV Fund’, which will be funded through air ambience fund, levy of additional taxes (including Green Tax), cess, fee on inefficient or polluting vehicles.

10. To transition Goa govt’s entire fleet used to commute government officers, to electric within a period of 1 year from the date of notification of the policy.

Subsidy:

A) The following incentives shall be given to large units manufacturing EVs & associated components:

1. Capital subsidy of up to 20% of Fixed Capital Investment.

2. 100% net SGST reimbursement for 5 yrs.

3. 100% stamp duty exemption.

B) The following incentives shall be given to MSMEs:

1. Built-up space with ready factory sheds will be developed to be used by MSMEs by Goa govt.

2. Capital subsidy of 30% on building/office up to Rs.5 lakh for micro-units and up to Rs.10 lakh for small & medium units.

3. 100% net SGST reimbursement for 5 yrs.

4. 100% stamp duty exemption.

5. 100% electricity duty reimbursement for 5 yrs.

6. Support in construction of effluent treatment plant with 50% capital subsidy.

C) For two-wheelers:

Incentives shall be available for electric two-wheelers subject to a maximum incentive of Rs.30,000 per vehicle. To avail these incentives, the following performance & efficiency criteria must be fulfilled:

Delivery service providers & rental operators shall be eligible for financing support from govt.

D) For E-Autos:

Purchase incentive of Rs.10,000 per kWh of battery per vehicle (subject to a maximum of Rs.30,000 per vehicle).

E) For E-Rickshaws & E-Carts:

Purchase incentive of Rs.30,000 per vehicle for the purchase of one E-Rickshaw or one E-Cart.

F) Goods Carriers:

Individuals & fleet owners shall be provided with a Purchase Incentive of Rs.30,000 per E-Carrier registered in Goa.

G) For E-Cars:

Purchase Incentive of Rs.10,000 per kWh subject to a maximum of Rs.1,50,000 per vehicle to the registered owner.

H) Provisions applicable across vehicle segments:

1. Road tax & registration fees are waived for all Battery Electric Vehicles.

2. The Purchase Incentives & Scrapping Incentives shall be given directly to the registered owners by the state govt.

3. Interest subvention of 5% is offered across all categories if the loan is availed from Convergence Energy Services Ltd.

4. All EVs registered in Goa shall be issued a green number plate.

I ) Support for Charging Infrastructure:

Availability of charging infrastructure is a key driver behind EV adoption. The policy aims for the following with respect to charging infra in Goa:

1. A charging station at every 25 km on highways & every 3 km within city limits.

2. Solar-powered stations will be given top priority in the case of both private & public charging stations.

3. Make all new & renovated buildings ‘EV Ready’ by demarcating at least 20% parking spots with a charging framework installed.

4. All housing & commercial establishments are compulsorily registered with Goa Electricity Dept for installing charging stations in parking spaces. Additional duties on electricity will be waived.

5. The govt shall provide a capital subsidy for the cost of chargers installation. No operational subsidy will be provided. The subsidy shall only be applicable for chargers being installed within 1 yr of the allocation of a concessional location.

6. The govt shall incur all electricity infra cost up to Rs.8 lakh associated with the installation of charging stations.

7. Electricity will be provided at a lowered tariff of Rs.4.2 per unit.

8. Installation of 50 charging stations at state bus depots, 5 fast-charging stations at the international airport & 10 slow-charging stations at Central Secretariat in Panaji.

9. Charging stations operators who set up renewable energy facilities shall be given power banking facilities with Goa Electricity Dept for operating over a period of 1 yr.

10. An open, publicly-owned database shall be developed and real-time information of public charging infra (including kWh, session length, location of charger, no. of chargers at the site, payment amount, pay structure whether by hr or by kWh or by session & payment mode).

Recycling Ecosystem:

EV batteries typically need to be replaced once they have degraded to operating at 70-80% of their capacities. Batteries that have reached their end of life shall either be reused or recycled. The Policy shall encourage recycling of such batteries in collaboration with battery manufacturers that focus on ‘urban mining’ of rare materials within the battery for reuse.

Funding:

1. The state govt seeks to fund a high proportion of the incentives proposed using the ‘feebate’ concept, which includes inefficient polluting vehicles incurring a surcharge (fee) while efficient ones receiving a rebate.

2. Pollution cess on sale of diesel & petrol at 75 paise per litre. The amount collected is to be transferred to State EV Fund on monthly basis.

3. Pollution cess on all conventional vehicles sold in Goa after notification of this policy.

4. Road tax called’ Green Tax’ levied on registration of diesel & petrol vehicles will contribute to State EV Fund.

5. Congestion Fee to be levied on all trips originating or terminating within Goa using cab services. This shall be waived for e-two wheeler, e-auto & e-cab.

Conclusion:

Recognizing the potential of EV in Goa, Ather Energy set up its first dealership in Goa in September. It has also installed 2 fast-charging points and intends to add 8-10 more such points in the near future. The potential of e-scooter tie-ups with rental service providers is also being considered. Ather Energy gave out a statement saying “Goa is India's most popular tourist destination, and every tourist is usually seen exploring the city on a two-wheeler, making Goa a strong two-wheeler market. Given the influx of people visiting Goa from other states, it has a lot of potentials to lead India's EV revolution.”

The recommendations & views shared by the state govt are encouraging, which will further strengthen the industry’s confidence. Despite its size, Goa has a vehicle density of 625 vehicles for every 1000 people. This shows the kind of potential EV players can have if they successfully tap into the market.