The state government will subsidize the initial cost of electric vehicles (EVs) for first-time users by reimbursing the Goods and Services Tax (SGST) and extending a one-time incentive, based on the battery capacity of the EV sold. .
Government goal is to increase penetration and adoption of electric vehicles in Rajasthan
Rajasthan recently became the latest state to unveil its own electric vehicle policy after Maharashtra, Gujarat, Delhi and Telangana. Through this announced new electric vehicle policy, the government of Rajasthan aims to boost the adoption of electric vehicles in the state. According to the Department of Transportation, the state government will subsidize the initial cost of electric vehicles (EVs) for early adopters by reimbursing the Goods and Services Tax (SGST) and extending a one-time incentive, depending on capacity. of the EV battery. sold.
Read also: Gujarat EV policy announced; Subsidies of up to 1.5 Lakh on the purchase of electric vehicles
In accordance with state policy, electric vehicles sold between April 1, 2021 and March 31, 2022 will be eligible for reimbursement from SGST. However, the major impact of the policy will be seen in the prices of electric two-wheelers sold or registered in the state. According to the notification, the SGST amount paid to the buyer of the electric two-wheeler will be equal to the amount mentioned on the invoice by the seller. The final amount will be transferred to the owners by the district transport manager.
Regarding one-off incentives, electric motorcycles and scooters with a battery capacity of up to 2 kWh will be eligible for a subsidy of 5,000. Electric two-wheelers with a battery capacity of 2-4 kWh will be eligible for an incentive of 7,000. However, models with a battery capacity between 4 kWh and 5 kWh will attract a subsidy of 9,000, while that electric two-wheelers with a battery capacity greater than 5 kWh will receive an incentive of 10,000.
Read also: Maharashtra EV Policy: Manufacturers Welcome New Policy, Expect Sales Growth
The state government offers similar incentives for electric rickshaws and freight carriers, with grants ranging from 10,000 to 20,000. The incentive structure of the Rajasthan EV policy is slightly lower than that offered on the EV policies of Maharashtra and Gujarat. Note that these incentives are in addition to the FAME 2 policy and customers can take advantage of the benefits to reduce the final cost of the electric vehicle.
Dr Yogesh Bhatia, Founder of Detel, said: “We appreciate the continued efforts of our government to promote green mobility in India. The visionary move by the government of Rajasthan is a step forward in motivating Indian customers to adopt electric vehicles faster. The additional subsidy provided by the state government will encourage manufacturers like us to develop new innovative product lines at the most disruptive price to promote the concept of electric mobility in the country. It will not only boost the adoption of vehicles. electricity, but also generate jobs at different levels ”.