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Gujarat announces new EV policy; state to provide subsidy support of Rs 870 cr over four years

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According to the new policy, the state will be providing subsidy support of Rs 870 crore over four years. Gujarat will provide up to Rs 20,000 subsidy on an electric two-wheeler.

Gujarat Chief Minister Vijay Rupani has announced an ambitious electric vehicle adoption road map to have two lakh electric vehicles in the state in the next four years.
The state government will provide a subsidy of Rs 10000/kWh compared to Rs 5000/kWh provided by other states. The total subsidy outlay for the scheme is Rs 870 crores. The state has also decided to waive off registration fees for all electric vehicle buyers.
The announcement comes in the backdrop of the decision by the union government to restructure the Faster Adoption and Manufacturing of Electric Vehicles scheme. The Department of Heavy Industries increased subsidy on electric two-wheelers' from Rs 10000/kWh to 15000/kWh. EESL will also be aggregating demand for 3 lakh electric three-wheelers' and over 4500 buses for 9 cities. The incentives now provided by Gujarat government will be additional incentives over those under the FAME scheme.
Under Gujarat’s new EV policy, customers would get subsidy support of Rs 20,000 on electric two-wheelers', Rs 50,000 on electric three-wheelers' and Rs 1.5 lakh on electric four-wheelers' priced up to Rs 15 lakh.
“The subsidy amount will be directly transferred to the beneficiary account through DBT and it will be ensured that the amount is credited in the account within very little time”, said an official.
Naveen Munjal, MD and CEO of Hero Electric and President of the Society of Manufacturers of Electric Vehicles welcomed the Gujarat government’s new electric vehicle policy.
“The revised EV policy by the state of Gujarat post the recent amendments of the central FAME policy is an excellent move which will further bridge the gap and make the switch to electric vehicles an attractive option. With this policy, the prices of Hero’s EVs will further come down making them the most affordable in the state of Gujarat when compared to pricing across the country. Further, the allocation of funds and capital to set up additional charging stations will help build the much-needed charging infrastructure and address range anxiety of the consumer”, he said.
Shailesh Chandra, president of the passenger vehicle business, Tata Motors, said, "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."
The state of Gujarat has received approval for 278 charging stations under the FAME II scheme. “The State government is aiming to increase 250 more stations and a capital subsidy of 25 percent in the limit of Rs. 10 lakhs provided for the purpose. Thus a network of 528 charging stations will come up in the State in coming years”, said Chief Minister Vijay Rupani.
The state government will be approving the setting up of charging stations at fuel pumps and will also support the swapping of battery and charging infrastructure.
Mahesh Babu, CEO of Mahindra Electric Mobility Ltd thanked the Gujarat government for notifying the new EV policy.
"The outlay of Rs 870 crore over the next 4 years will help EVs flourish in the state of Gujarat. The policy outlines clear adoption strategies, especially in the last mile mobility segment. The fiscal benefits being offered by the government will directly benefit the end customer while the non-fiscal benefits will help develop the overall EV ecosystem in the State. Mahindra is eager to deploy products like the Treo three-wheeler range which will help customers to earn more given its lower operating cost and will help Gujarat become one of the leading States in EV adoption states in the country," he said.