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Gujarat government introduces subsidies of up to Rs 1.5 lakh on electric vehicles

As per a rough estimate, the new policy will help in saving fuel worth Rs 5 crore every year, CM Vijay Rupani said
Last Updated : 22 June 2021, 17:19 IST
Last Updated : 22 June 2021, 17:19 IST
Last Updated : 22 June 2021, 17:19 IST
Last Updated : 22 June 2021, 17:19 IST

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The Vijay Rupani-led BJP government on Tuesday announced its "Gujarat Electric Vehicle Policy 2021," with an aim to make about two lakh electric vehicles ply on state roads in the next four years. The government estimates that 1.10 lakh two-wheelers, 70,000 three-wheelers and 20,000 four-wheelers will be on roads in the state in the next four years.

Announcing the policy in Gandhinagar, Chief Minister Rupani said in a press conference that the government will provide a subsidy of Rs 10,000 per Kilowatt, compared to only Rs 5,000 by other states.

He said that the government will bear the cost of a total of Rs 870 crore as subsidy for encouraging people to opt for electric vehicles under the policy in the next four years.

Rupani informed that the government will extend Rs 20,000 subsidy for purchase of two-wheelers priced below Rs 1.5 lakh, Rs 50,000 for three-wheelers priced below Rs 5 lakh and Rs 1.5 lakh for four-wheelers having a price up to Rs 15 lakh. The subsidy amount will directly be transferred to the beneficiary's account.

"In comparison to other vehicles, the per kilometer expenditure in e-vehicles is 30 to 50 percent less. It also helps in reducing air pollution and safeguarding the environment. We have estimated that if around two lakh electric vehicles come up in the state in next four years then it will help in saving fuel worth Rs 5 crore and reduce around 6 lakh tonnes of carbon dioxide emission," Rupani told reporters.

He also added that under the new policy, any vehicle, private or commercial, approved by Gujarat RTO will get an exemption from the registration fee. He said the policy also includes providing battery charging infrastructure.

He said that under FAME (Faster Adoption and Manufacturing of Hybrid and EV)-2 scheme, 278 charging stations have been approved and the government is aiming to increase 250 more stations. He said the petrol pumps will also be given approval for charging stations.

Following the announcement, Shailesh Chandra, President, Passenger Vehicle Business, Tata Motors, said in a statement, “We welcome the move by the Gujarat Government, offering incentive support for all categories of electric vehicles. This clearly signals a strong resolve of the government towards a cleaner environment and a sustainable future for the country. Also, the support extended towards charging infrastructure will accelerate the ecosystem development and bring greater comfort for EV buyers. We compliment the Gujarat Government for introducing such a progressive policy."

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Published 22 June 2021, 11:44 IST

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