Electric vehicles are gradually picking up the pace in India. While the central government have a subsidy plan devised for EV buyers, the state governments are also doing their bit to promote the adoption of green vehicles in their respective states. Gujarat is the latest state to bring out a policy that will reward consumers for buying EVs. Gujarat State Electric Vehicle Policy 2021, the government has unveiled a 4-year plan with a budget of Rs 870 crores offered through subsidies/incentives to the buyers.
In a press conference held earlier, Gujarat Chief Minister Vijay Rupani unveiled the state’s EV policy that will bring tangible benefits for those purchasing an electric two-wheeler, three-wheeler, or four-wheeler, along with those who will be setting up charging stations across the state. These benefits are over and above those already offered by the national FAME II subsidy scheme. Gujarat estimates these will help the state save fuel expenditure of up to Rs 5 crore, and also reduce CO2 emissions by six lakh tonnes in the next four years.
Gujarat’s Subsidy Policy
The Gujarat government has set out to increase the EV count to 2 lakh units over the next four years. The new subsidy policy will play a major role in achieving this ambitious goal. While people are still opting for petrol or diesel cars as their EV counterparts are much expensive, the Gujarat government will offer incentives to buyers thus reducing the price gap between EVs and ICE-powered vehicles.
The incentive of ₹10,000 per kWh of battery capacity is the highest offered by any state in India, but the total subsidy is capped at ₹20,000 for electric scooters and motorcycles, the same is capped at ₹50,000 for three-wheelers, and four-wheelers will get an incentive of up to ₹1.5 lakh for electric cars and SUVs. These incentives will be credited directly by the state transport department to the buyer’s bank account once the purchase document of the vehicle has been authenticated. Not only this, the Gujarat government has also waived off the registration cost for all EVs registered in the state.
Currently, there are about 258 charging stations in Gujarat. With this policy, the government aims to take this number up to 558 by adding 250 more. To enable this, the first 250 commercial public EV charging stations will be eligible for a 25% capital subsidy on equipment/machinery (limited to ₹10 lakh per station). Moreover, Gujarat will waive off electricity duty for EV charging stations for the duration of the policy. Extra details on how developers will be able to avail of this subsidy will be shared in the coming future.
This is a welcome step from the government of Gujarat to boost the adoption of electric vehicles. With this policy, buying an EV in Gujarat is going to be the most affordable as compared to all other states in India. We hope they follow suit.