Gujarat Brings New EV Policy with Subsidies on Vehicle Purchase

Gujarat Chief Minister Vijay Rupani announced the Gujarat Electric Vehicle Policy 2021, with an aim to have over 2 lakh electric vehicles on the roads in the next four years.

"Gujarat is renowned in the country as an automobile hub. Now we aim to become the electric vehicle hub in the coming years. The Electric Vehicle Policy 2021 is declared today with an aim to make Gujarat a landmark transportation hub," Rupani said.

"We are stressing on four points in this new policy. One is to popularise the use of e-vehicles in the state; second, to make Gujarat a hub for e-vehicle manufacturing; third, reduce pollution and protect environment; and lastly, encourage young startups and investors in the field of electric mobility," added Rupani.

"Currently, 278 charging stations are available in the state for e-vehicles. Infrastructure for 250 new charging stations will come up, which will take the total tally to 528," said Saurabh Patel, Energy Minister, Gujarat.

To incentivise people to move towards electric vehicles, the state government will provide subsidies on the purchase of e-vehicles.

"Subsidies of up to Rs 20,000 for two-wheelers, Rs 50,000 for three-wheelers and up to Rs 1.5 lakh for four-wheelers will be directly credited to the bank accounts through the DBT mode. These benefits will be available on the purchase of two-wheelers with price up to Rs 1.5 lakh, three-wheelers with price up to Rs 5 lakh and four-wheelers having price up to Rs 15 lakh.

"Moreover, the purchaser of an e-vehicle registered at Gujarat RTO will be exempted from registration fee. Gujarat will give double the amount of subsidy than any other state for e-vehicle per kilowatt. On top of that, the purchasers will also avail the benefits from Government of India's Fame - scheme to encourage e-vehicles," Rupani said.

The government will also incentivise setting up of charging stations on the highways of the state.

"Charging facilities will be provided 25 per cent capital incentive with a cap of Rs 10,00,000 as a form of subsidy. Within a period of four years, we are hoping to save fuel worth Rs 5 crore. And environmentally also, a minimum of 6 lakh tonnes CO2 emission will be reduced," added Rupani.

"We are expecting of around 2 lakh electric vehicles coming up in the state in the next four years which will help in saving fuel worth Rs 5 crore," Patel told the media.

"The government will provide subsidy of Rs 10,000 per kilowatt. Other states provide maximum Rs 5,000 per kilowatt while Gujarat will provide double the subsidy. The state will bear the cost of Rs 870 crore in the next four years," said Rupani.