August 05, 2021

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Rajasthan unveils EV Policy 2021

Rajasthan unveils EV Policy 2021

Rajasthan unveils EV Policy 2021

After the Meghalaya, Gujarat, Delhi, Telangana, and Maharashtra governments and Goa draft EV policy announcements, Rajasthan has now unveiled its own initiative to boost the adoption of electric vehicles in the state. The electric vehicles buyers will be benefited as the government will provide subsidies to the buyers of electric vehicles by offering the reimbursement of state goods and service tax (SGST) and it will also provide a one-time incentive. Read further to know more about Rajasthan unveils EV Policy 2021. 

Rajasthan unveils EV Policy 2021

The all-electric two-and three-wheelers, as per their battery capacity and the grant amount is payable on vehicles purchased from April 1, 2021, to March 31, 2022, and registered till March 2022.

The SGST amount paid to the buyer of the electric two-wheeler will be equal to the amount mentioned in the bill by the seller of the vehicle. The final amount will be transferred directly to buyers by the District Transport Officer.

The electric two-wheelers such as electric scooters and motorcycles with a battery capacity of up to 2 kWh will be eligible for a subsidy of Rs 5,000. The electric two-wheelers whose battery capacity is 2 to 4 kWh will be eligible for a Rs 7,000 incentive and with a battery capacity of between 4 to 5 kWh will receive a Rs 9,000 incentive while e-two-wheelers with a battery capacity of over 5 kWh will be eligible for a Rs 10,000 incentive.

Rajasthan’s Transport Minister Pratap Singh Khachariawas announced that the state will provide subsidies to the buyers of the electric vehicles by offering to reimburse the state goods and service tax (SGST) and it will also extend the one-time incentive depending on the battery capacity of the vehicle.

The Rajasthan government is providing very few incentives on electric vehicles, it is offering only Rs 5,000 of subsidy to the electric scooters and motorcycles with a battery capacity of up to 2 kWh, and the models whose battery capacity is 2 to 4 kWh will be eligible for a Rs 7,000 incentive, at current we find only 2-3kWh battery capacity electric two-wheelers and there is no 4kWh battery capacity vehicle at the moment in India. It is offering a Rs 7,000 incentive on 4kWh and Rs 9,000 on 4 to 5 kWh and 5 kWh will be eligible for Rs 10,000 incentive.

So there is no use in providing incentives as the existing models will not be fully eligible for the subsidy moreover the amount of the subsidy is also too low. I think the government needs to revise the EV policy again.

Also, read related article: State EV policies plan in India amidst Covid19 

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