Gujarat Electric Two-wheeler Policy 2021 Explained In Detail

Gujarat aims to have 2 lakh electric vehicles on its streets over the next four years

The EV sector is finally hitting some strides in India. The Centre recently announced revised Fame-II subsidies to drive the adoption of electric two-wheelers in the country. Now, the Gujarat government has announced the ‘Gujarat Electric Vehicle Policy 2021’ aimed at promoting the EV industry and thereby cutting carbon emissions for cleaner cities. The growing demand for EVs will also encourage businesses to look at the state as a manufacturing hub.

Additional Subsidies 

Under the policy, Gujarat aims to have 2 lakh electric vehicles on the streets over the next four years. To aid this ambitious target, the government has proposed several provisions. For starters, the incentives are capped at 40 percent of the retail price of EVs. Meaning, one can avail a maximum subsidy of Rs 20,000 on two-wheelers, Rs 50,000 on three-wheelers, and up to Rs 1.5 lakh on four-wheelers through the government. 

Waivers

Interestingly, the amount will be directly credited to the customer's bank account via Direct Benefit Transfer or DBT. Better still is the 100 percent waiver on motor registration fee for electric vehicles, be it private or commercial, as long as it's registered at Gujarat RTO. More importantly, these new benefits will be offered over and above the current Fame-II incentives, which means EVs in Gujarat are likely to come dirt cheap.

Investment Opportunities

The policy also includes investment opportunities for infrastructure development. Potential investors can avail a 25 percent capital subsidy for setting up around 250 new EV charging stations for two-, three- and four-wheelers. Mind you, Gujarat already has 278 charging stations. Also worth mentioning is the fact that petrol pumps will be given approvals to set up charging stations with designated parking spaces. However, they are liable to obtain a ‘No Objection Certificate’ (NOC).

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Commenting on the policy, Sohinder Gill, Director-General, Society of Manufacturers of Electric Vehicles (SMEV), said, “The policy certainly has the potential to make Gujarat an EV hub and would mobilise a rapid adoption of electric vehicles in the state. We are excited to be part of this journey and would put all our efforts towards achieving the state government’s target under the policy. The policy also gives thrust on the charging infrastructure that would address the issue of range anxiety, especially amongst the people who want to buy an electric four-wheeler.”

Welcoming the new policy, Co-founder and CEO of Ather Energy, Tarun Mehta, said, "The new electric vehicle policy introduced by the Gujarat government is a great move and will have a considerable impact on the adoption rate of EVs in the state. Gujarat has always taken a lead in encouraging green mobility through various progressive policies and initiatives, including the proposal to have the first EV only city, Kevadia. The government offering double the subsidy of any other state for every kWh will make it a leading destination for electric vehicles. The incentives will make vehicles more affordable and accessible to the end consumers and will accelerate the charging infrastructure in the state. More progressive policies coming into play will certainly fast-track electric mobility adoption in the country.”

Gujarat’s bold move to curb carbon emissions and promote EVs will surely help India move in the right direction. It’s only a matter of time before other states join in and further promote the adoption of electric vehicles.