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Electric Cars, Scooters To Get Highest Subsidy In Gujarat – Nexon EV, Ather

Tata Nexon Electric
Image – Anubhav Chauhan

State-level subsidy in addition to FAME-II will help boost electric vehicle sales

It’s good to see that states have started doing their bit to promote use of electric vehicles. The latest update comes from Gujarat where the state government has chalked out a detailed plan to boost EV usage. Gujarat’s new EV policy covers various aspects such as subsidies, encouraging startups and manufacturers to set up operations, and augmenting charging infrastructure.

Double subsidy

Over the next four years, Gujarat government aims to increase electric vehicle count in the state to 2 lakh units. A number of steps will be taken to achieve that goal. One of the key policy decisions is to increase subsidy for EVs registered in the state. The state government has stated that it will offer double the amount of subsidy in comparison to other states. This will be applicable on a per kilowatt basis.

For two-wheelers, subsidy of up to Rs 20,000 has been approved. For three-wheelers and four-wheelers, the subsidy amount will be up to Rs 50,000 and Rs 1.5 lakh, respectively. This will be in addition to the subsidy already available under FAME-II scheme launched by the central government.

This means that the electric scooters like Ather, Okinawa, Hero, Ampere, etc and electric cars like Tata Nexon Electric, MG ZS EV, Hyundai Kona electric – will get even more cheaper in Gujarat. This new policy will basically make electric vehicles cheapest in the state of Gujarat, as compared to anywhere else in India.

Ather Electric Scooter
Ather Electric Scooter

The subsidy amount being offered by the state will be transferred to the buyer’s bank account via direct benefit transfer (DBT). This will eliminate any possibilities of fake subsidy claims or fraudulent operations. In other incentives, EVs registered in Gujarat will not be required to pay registration fee.

Manufacturing and infrastructure ramp-up

Gujarat government is aiming to make the state a hub for manufacturing of EVs and related parts and components. The government will also be encouraging investors and startups, who could contribute towards the development of better products in the EV space.

On the infrastructure front, 250 new charging stations will be setup in the state. The state already has 278 charging stations. To setup more charging stations, the government has plans to use the space available with petrol pumps. Charging stations are also planned to be setup at housing societies and commercial complexes.

Fuel savings and pollution control

Within four years of implementing Gujarat’s new EV policy, several crores worth of fuel will be saved. Another key benefit will be 6 lakh ton reduction in CO2 emissions.

With this new EV policy, EV sales could soon witness a boost in the state. Subsidy amount available under FAME-II has also been increased. With both subsidies combined, the price gap between EVs and fossil fuel powered vehicles could be reduced. Constantly rising prices of petrol and diesel is another factor that may motivate people to switch to electric.

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