The Gujarat government’s new electric vehicles policy has fueled optimism among EV makers and sellers in the state.
The Gujarat Electric Vehicle Policy 2021 provides for a subsidy of up to Rs 20,000 on EVs in the two-wheeler category, Rs 50,000 for three-wheelers, and Rs 1.5 lakh for cars. Also, the State government has exempted e-vehicles registered in Gujarat RTOs from paying the registration fee. According to the state government’s calculations, Gujarat’s subsidy for EVs stands at Rs 10,000 per kilowatt, the highest for any State. Also, a capital incentive of up to Rs 10 lakh, or 25 percent capital subsidy of the project cost, is to be provided for the development of charging stations.
EV charging infrastructure
Kartikey Hariyani, CEO of CHARGE+ZONE – an operator of charging stations, said, “Measures such as additional cash subsidy on the purchase of electric vehicles and incentives to build EV Charging Infrastructure will go a long way in making EV a formidable sector in Gujarat. We are looking forward to working closely with the government authorities to increase the outreach of charging points.”
Lauding the State government’s move as a bold step with the potential to make Gujarat an EV hub, DG, Society of Manufacturers of Electric Vehicles (SMEV), Sohinder Gill, said, “We are excited to be part of this journey and would put in every effort towards achieving the state government’s target under the policy. The policy also gives a thrust to charging infrastructure that would address the issue of range anxiety, especially amongst people who want to buy an electric four-wheeler.”
The CEO of Mahindra Electric Mobility Ltd, Mahesh Babu, said the policy announcement was progressive and comprehensive as the financial benefits would directly benefit the end customer. While the non-fiscal benefits would help develop the overall EV ecosystem in the State. “The outlay of Rs 870 crore over the next four years will help EVs flourish in Gujarat. The policy outlines clear adoption strategies, especially in the last-mile mobility segment. Mahindra is eager to deploy products like the Treo three-wheeler range, which will help customers earn more given its lower operating cost and will help Gujarat become one of the leading States in EV adoption in the country.”
Tarun Mehta, co-founder and CEO of two-wheeler maker, Ather Energy, in a Twitter post said, “Gujarat might just go from having the most expensive EVs in the country to the cheapest in one policy change today.”
Gujarat EV Policy 2021: Benefits for EV buyers
This particular version of the Gujarat EV Policy will be valid until the 1st of July, 2025. Under it, the state will provide subsidies to those buying EVs under all three categories – two-wheelers, three-wheelers, and four-wheelers. An incentive of Rs 10,000 per kWh of battery capacity will be provided to electric scooters and electric motorcycles in the state. This is the highest incentive offered by any state but it happens to be capped at Rs 20,000. As for e-rickshaws, an incentive of Rs 50,000 per kWh will be on offer, while the number goes up to Rs 1.5 lakh for electric cars and SUVs. To further entice buyers, the Gujarat government has also announced that it will waive the registration fee for buyers of electric vehicles, making them even more affordable.
The Gujarat Government has made it clear that all these incentives will be credited directly to buyers’ bank accounts once the purchase documents of the vehicles are authenticated. The state has also revealed that it targets to subsidize the purchases of 2, 00,000 EVs of which 1, 10,000 will be two-wheelers, 70,000 will be three-wheelers, and 20,000 will be four-wheelers.
Gujarat EV Policy 2021: Benefits for charging infrastructure developers
At the time of the launch of the Gujarat EV Policy of 2021, the state had 278 EV charging stations. The policy aims to take that number up to 528 by adding 250 more. Those who set up these first 250 charging stations in Gujarat will receive a 25 percent capital subsidy on the equipment. This will be capped at Rs 10 lakh per station. Moreover, the state has also said that it will waive the electricity duty for EV charging stations for the duration of the policy. Lastly, the Gujarat Government has said that it plans to approve the building of EV charging stations at fuel pumps across the state.
With the launch of this EV policy, Gujarat estimates to bring a Rs 5 crore reduction to the state fuel expenditure. And then, of course, there’s also the promise of a reduction in CO2 emissions. A drop of up to six lakh tones is expected in the next four years.
Incentives for early adoption of electric vehicles
The Demand Incentive from the State shall be over and above any subsidies that are available from the Central Government through its promotional schemes and policies. The subsidy shall be disbursed directly to the customer via DBT mode from the State Transport Department on authenticating the document for the purchase of the vehicle.
Incentives for Charging Infrastructure
- The state government shall promote charging infrastructure of different capacities/technologies and promote a variety of business models. Privately-owned and investor-owned charging and battery swapping stations are encouraged under this policy.
- Commercial public EV charging stations for 2-wheelers, 3-wheelers, and 4-wheelers will be eligible for a 25% capital subsidy on equipment/machinery (limited up to Rs. 10 lakhs per station) for the first 250 commercial public EV charging stations. The detailed procedure to avail of the subsidy shall be announced in subsequent guidelines.
- The subsidy for charging stations shall only be given to those developers, individuals, or entities that have not availed subsidies under any other promotion schemes under the Government of India policies or schemes.
- All housing and commercial establishments shall give a ‘No Objection Certificate’ (NOC) to its members who wish to install charging stations with designated parking spaces.