7 Takeaways From Gujarat’s New EV Subsidy Policy
While the new policy is a win-win for potential EV customers, only one car is currently eligible for it
In a press conference, the Gujarat Chief Minister Vijay Rupani, has unveiled the state’s new EV policy. The new benefits announced are the highest of any state and should encourage the audience for electric vehicles. While the new policy has many pros, there’s a single but significant con to it.
Here are seven facts you should know about the state’s EV policy:
Per kWh Incentive
An incentive of Rs 10,000 per kWh of battery capacity is offered, which is among the highest in the country. However, the total subsidy for electric cars has been capped at up to Rs 1.5 lakh. This, along with other incentives, will be directly credited to the buyer’s bank account once the car’s documents have been submitted and approved.
Maximum Cap For Ex-Showroom Price
The biggest con to it is that not all the electric cars in India are covered under this new subsidy. To be eligible for these benefits, the ex-showroom price of the electric car cannot cross Rs 15 lakh. That means, this policy is not applicable for buyers interested in the Hyundai Kona, MG ZS EV, Mercedes Benz EQC and Jaguar i-Pace. Only the Tata Nexon is eligible for this policy, that too only the base variant.
No Registration Fee
The Gujarat government will further waive off the registration fee for all the electric cars. This would also reduce the on-road price of the EV by a significant amount.
Subsidies On Charging Infrastructure Developers
To encourage the development of charging infrastructure across the state, the government is offering a 25 percent capital subsidy on equipment and machinery. However, it is applicable only for the first 250 commercial EV charging stations and the subsidy has been capped at Rs 10 lakh per station.
Charging Stations At Your Home, Offices And Petrol Pumps
The government has directed the housing and commercial establishments to furnish No-Objection Certificates (NOCs) for the installation of charging stations and allocation of designated parking spots. Additionally, the petrol pumps will also be allowed to set up charging stations.
Not applicable for existing EV owners
This policy will come into effect from July 1, 2021 for a period of up to four years. So, electric cars purchased from July 2021 up to July 2025 will only be applicable for the new state subsidy policy.
What Do Manufacturers Have To Say On This?
Shailesh Chandra, president, passenger vehicle business unit, Tata Motors said, “We welcome the move by the Gujarat Government, offering incentive support for all categories of electric vehicles. The support extended towards charging infrastructure will accelerate the ecosystem development and bring greater comfort for EV buyers. ”
Mahindra is gearing up for the launch of electric KUV100 and XUV300, while Maruti Suzuki and Tata Motors are working on the Wagon R and Altroz EVs, respectively. These all cars are likely to be priced under Rs 15 lakh and could possibly benefit from this new subsidy policy.
Read More on : Tata Nexon EV Automatic
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