Gujarat New EV Policy 2021 – Rs 1.5 Lakh Subsidy for Electric Vehicles

Gujarat New EV Policy 2021 – Rs 1.5 Lakh Subsidy for Electric Vehicles

On Tuesday, the Government of Gujarat launched the new ‘Gujarat Automobile Electric Coverage 2021′ Policy, which provides Rs. 870 crore subsidies for electric vehicles and charging infrastructure in order to stimulate electric vehicle sales in the state.
In addition to encouraging electric vehicles, Gujarat is intended as a hub for electric vehicles and related components, as well as stimulating investments in energy mobility and reducing automobile pollution.

On the purchase of an electric automobile, the government would provide a subsidy of up to Rs. 1.5 lakh. Subsidies of Rs. 20,000 and Rs. 50,000 would be given to electric two- and three-wheelers, respectively. The subsidy is transferred directly by direct benefit transfers to the owners’ bank accounts.

In addition, the policy states that all-electric vehicles will be exempt from registration fees and will benefit from the Union government’s FAME-II scheme. In the next four years, Gujarat plans at least two lakh electric vehicles on the roads. The new programme will thrice the level of subsidies per kilowatt in any state in Gujarat, the administration has said.

Gujarat New EV Scheme - Rs 1.5 Lakh Subsidy for Electric Car

Charging Stations

CM Vijay Rupani stated that the strategy also included incentives to provide an infrastructure to charge the EV. In addition to the current clearance for 278 charging stations, the government intends to add another 250 outlets. It also grants a capital subsidy of 25 percent, up to an INR 10 lakh maximum.

“In total, we want to have 500 charge stations that can also be installed in oil pumps or on the road. This helps car owners drive greater distances. We shall also provide cash support for entrepreneurial investment in the creation of charging stations, “- said Rupani.

The government will also push infrastructure charges with various commercial models and technology. It will also encourage private enterprises, distributors, and investors to exchange batteries and charge infrastructure.

Gujarat New EV Scheme - Rs 1.5 Lakh Subsidy for Electric Charging Stations
Anyone who wants to create a charging station must be provided with a NOC by all housing companies and commercial establishments. During the time of policy, charging stations shall be 100% exempt from power tariffs.

In addition, Gujarat EV Policy 2021 aims at reducing CO2 emissions in the next four years by up to 6 lakh tonnes and fuel savings up to Rs. 5 crores.

Thoughts And Comments from Electric Vehicles Manufactures :

“The updated EV policy by the state of Gujarat following the recent modifications to the government FAME program is a fantastic step that will further bridge the gap and make the conversion to electric cars an appealing option,” said Mr Naveen Munjal, MD, Hero Electric. With this legislation in place, Hero’s electric vehicles will become even more inexpensive in Gujarat, making them the most economical in the country.”

He further stated that as a result of this policy, Hero’s electric vehicles would become even more inexpensive in Gujarat, making them the most economical in the country.

Mr Shailesh Chandra, President, Tata Motors Passenger Vehicle Business Unit, praised Gujarat’s new EV policy. “We applaud the Gujarat government’s decision to provide incentive assistance for all types of electric vehicles,” he added. This obviously demonstrates the government’s strong commitment to a cleaner environment and a long-term future for the country.

Furthermore, assistance for charging infrastructure would hasten ecosystem growth and provide better convenience for EV consumers. We applaud the Gujarat government for enacting such a forward-thinking policy.”

Mr Sohinder Gill, DG, Society of Manufacturers of Electric Vehicles (SMEV), stated in response to the recently announced EV policy: “We applaud Gujarat’s government for establishing a promising and ambitious electric car policy. The strategy has the potential to turn Gujarat into an EV centre and accelerate the uptake of electric vehicles in the state. We are thrilled to be a part of this adventure and will make every effort to meet the policy’s objective set by the state government.”

He went on to say that the policy’s focus on charging infrastructure will help to alleviate range anxiety, particularly among individuals looking to buy an electric four-wheeler.

Nagesh Basavanhalli, MD & Group CEO, Greaves Cotton, and Director, Ampere Vehicles, commented on the policy “The Gujarat Electric Vehicle Policy 2021 represents a significant step forward for EV producers and customers alike. Its goal is to not only cut carbon emissions but also to inspire young entrepreneurs to enter the sector of electric transportation. The government is significantly improving EV infrastructure by providing an attractive chance to put up charging stations at gas stations. Such attempts to solve charging infrastructure problems excite us at Ampere Electric.”

On the new EV policy announced by the Government of Gujarat, Mr Mahesh Babu, CEO, Mahindra Electric Mobility Ltd., remarked, “The expenditure of Rs 870 crore over the next four years would enable EVs to flourish in the state of Gujarat.” The strategy lays out explicit adoption methods, particularly for last-mile transportation. The government’s fiscal advantages will directly assist the end consumer, while the non-financial benefits will aid in the development of the state’s broader EV ecosystem.”

He went on to say that his firm is excited to roll out goods like the Treo three-wheeler range, which will help consumers earn more money due to decreased operating costs and would help Gujarat become one of the country’s top EV adoption states.

“With the introduction of the e-vehicle policy, the Gujarat government is facilitating the inevitable shift from carbon-emitting cars to greener forms of transportation,” stated Nakul Kukar, Founder and CEO of Cell Propulsion, an electric mobility start-up. The Gujarat Electric Vehicle Policy 2021 arrives at a critical juncture at which both the federal and state governments are making positive efforts to increase EV awareness and adoption.”

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