A handy list of incentives and benefits for electric vehicles in each state- Technology News, Firstpost

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Cost – that four-letter word has been one of the biggest obstacles in the way of electric vehicles. With the lack of necessary infrastructure, this means that India’s automobile industry is heavily dependent on the internal combustion engine. However, things are changing – with every passing day, electric vehicles are within reach of mainstream buyers, driven by India’s initiatives to promote e-mobility. The central government provides exemptions under the national FAME-II scheme, and further incentives to transition, are individual state EV policies, which make EVs even more affordable.

However, each state has its own criteria for electric vehicle subsidies, meaning the benefits are more significant in some areas, bringing EVs closer to being an accessible option for mass market buyers. So, which Indian state offers the highest subsidy on electric vehicle purchases? let’s take a closer look.

State-specific EV policies are further fueling electric vehicle uptake across the country. Image: Tech2/Rupixen.com via Pixabay

State EV subsidy on electric two wheelers

State-specific EV policies have been formulated for a period of four to five years from the time of notification, and will subsidize only a limited number of vehicles. Most Indian states, in their EV policies, have decided to allocate subsidies for electric two-wheelers (which are eligible for incentives under the FAME-II scheme) based on the size of their lithium-ion battery packs. The incentive amount is decided on a ‘per kWh battery capacity’ basis, with only two states offering the subsidy on a different basis.

Leading in terms of the highest subsidy available is Delhi, which offers an incentive of Rs 5,000 per kWh and a maximum incentive of Rs 30,000 (provided the battery is larger than 5 kWh). Currently second on the list is Maharashtra, which, too, offers a subsidy of Rs 5,000 per kWh, taking the total subsidy to Rs 10,000. However, with the early bird incentive (up to Rs 15,000; valid only till December 31, 2021), the total subsidy for any electric two-wheeler with a 3 kWh (or larger) battery will be Rs 25,000.

State Wise Incentives for Electric Two Wheelers

State Battery capacity per kWh maximum subsidy road tax exemption
Delhi Rs 5,000 Rs 30,000 100%
Maharashtra Rs 5,000 Rupee. 25,000* 100%
Meghalaya Rupee. 10,000 Rs 20,000 100%
Gujarat Rupee. 10,000 Rs 20,000 50%
Assam Rupee. 10,000 Rs 20,000 100%
Bihar^ Rupee. 10,000 Rs 20,000 100%
West Bengal Rupee. 10,000 Rs 20,000 100%
Rajasthan Rajasthan Rs 2,500 Rupee. 10,000 No
Orissa No Rs 5,000 100%
Uttar Pradesh No No 100%
Kerala No No 50%
Karnataka No No 100%
Tamil Nadu No No 100%
Telangana No No 100%
Madhya Pradesh No No 99%
Andra Pradesh No No 100%
Punjab No No 100%

*Including early bird incentives; ^Policy not yet approved

The states of Meghalaya, Assam, Gujarat and West Bengal offer higher subsidies of Rs 10,000 per kWh, with the total subsidy limited to Rs 20,000. Bihar’s EV policy – which is yet to be approved – offers similar benefits. Rajasthan provides subsidy of up to Rs 5,000 for two-wheelers with 2 kWh battery and Rs 10,000 for those with battery larger than 5 kWh. Odisha, on the other hand, offers a flat subsidy of Rs 5,000.

States such as Andhra Pradesh, Karnataka, Madhya Pradesh, Telangana, Tamil Nadu, Uttarakhand, Punjab and Uttar Pradesh do not offer any direct subsidy to electric two-wheeler buyers as part of their policies.

Road tax for electric vehicles has been completely waived off in most of these states except Gujarat and Kerala, where buyers have to pay 50 per cent of the total road tax amount.

State EV Subsidy on Electric Cars and SUVs

Like two-wheelers, electric cars and SUVs are also subsidized by state EV policies. However, the total number of vehicles covered under these policies is quite small. Electric cars have significantly larger batteries, and are eligible for a substantial amount as subsidies. Most states have capped the total number of subsidized electric cars to 10,000 units. The ex-factory cost limit for eligible vehicles has been pegged at Rs 15 lakh, which means that currently, it is only the Tata Tigor EV Ziptron and Tata Nexon EV that are eligible for the incentive in all states. Larger, more expensive EVs like the MG ZS EV and Hyundai Kona Electric are not eligible for these subsidies.

On the four wheelers front, it is Maharashtra which is currently at the forefront. The base incentive of Rs 5,000 per kWh is similar to that of electric two-wheelers, but the maximum subsidy is Rs 1.50 lakh. However, with the early bird incentive (up to Rs 1 lakh), the total subsidy amount increases to Rs 2.50 lakh.

State EV Subsidy on Electric Cars and SUVs

State Battery capacity per kWh maximum subsidy road tax exemption
Maharashtra Rs 5,000 Rupee. 2,50,000* 100%
Delhi Rupee. 10,000 Rs 1,50,000 100%
Gujarat Rupee. 10,000 Rs 1,50,000 50%
Assam Rupee. 10,000 Rs 1,50,000 100%
Bihar^ Rupee. 10,000 Rs 1,50,000 100%
West Bengal Rupee. 10,000 Rs 1,50,000 100%
Orissa No Rs. 1,00,000 100%
Meghalaya Rs 4,000 60,000 rupees 100%
Rajasthan Rajasthan No No No
Uttar Pradesh No No 75%
Kerala No No 50%
Karnataka No No 100%
Tamil Nadu No No 100%
Telangana No No 100%
Madhya Pradesh No No 99%
Andra Pradesh No No 100%
Punjab No No 100%

*Including early bird incentives; ^Policy not yet approved

Delhi, Gujarat, Assam and West Bengal offer incentives of Rs 10,000 per kWh, but the total subsidy is limited to Rs 1.50 lakh. Bihar’s yet to be notified EV policy also mentions similar benefits. Odisha provides an incentive of up to Rs 1 lakh for eligible vehicles, while Meghalaya – with an incentive of Rs 4,000 per kWh – provides a total subsidy of Rs 60,000.

Rajasthan, Andhra Pradesh, Karnataka, Madhya Pradesh, Telangana, Tamil Nadu, Uttarakhand, Punjab and Uttar Pradesh do not extend direct subsidies for electric cars and SUVs in their policies.
Once again, road tax has been completely waived for electric four-wheelers in most states except Gujarat and Kerala, where buyers pay 50 per cent of the total road tax amount, and Uttar Pradesh, where Buyers need to pay 75. percentage of road tax amount

Meanwhile, the registration fee has been waived off for all types of electric vehicles across the country. In August, the Ministry of Road Transport and Highways (MoRTH) announced that all battery-operated vehicles are exempted from ‘payment of fee for the purpose of issue or renewal of certificate of registration’.

This article will be updated as new policies are notified and existing policies are revised.





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