The state government will subsidise the upfront cost of electric vehicles (EVs) for early adopters by reimbursing the state goods and service tax (SGST) and extending a one-time incentive, depending upon the battery capacity of the EV sold.
The government’s aim 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 newly announced EV policy, the government of Rajasthan aims to boost the adoption of electric vehicles in the state. As per the transport department, the state government will subsidise the upfront cost of electric vehicles (EVs) for early adopters by reimbursing the state goods and service tax (SGST) and extending a one-time incentive, depending upon the battery capacity of the EV sold.
Also Read: Gujarat EV Policy Announced; Subsidies Of Up To ₹ 1.5 Lakh On Electric Vehicle Purchase
As per the state policy, electric vehicles sold between April 1, 2021, to March 31, 2022, will be eligible for SGST reimbursement. However, the major impact of the policy will be seen on 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 in the bill by the seller. The final amount will be transferred to the owners by the District Transport Officer.
As for one-time incentives, electric motorcycles and scooters with a battery capacity of up to 2kWh will be eligible for a subsidy of ₹ 5,000. The electric two-wheelers with a battery capacity of 2 to 4kWh will be eligible for an incentive of ₹ 7,000. However, the models with a battery capacity between 4kWh to 5kWh will attract ₹ 9,000 subsidy, while the e-two-wheelers with over 5kWh battery capacity will get an incentive of ₹ 10,000.
Also Read: Maharashtra EV Policy: Manufacturers Welcome New Policy, Expect Sales Growth
The state government is providing similar incentives for e-rickshaws and goods carriers, wherein subsidies ranging from ₹ 10,000 to ₹ 20,000. The incentive structure of Rajasthan’s EV policy is slightly lower than the ones offered on EV policies of Maharashtra and Gujarat. Do note, these incentives are in addition to the FAME 2 policy, and customers can avail of the benefits to reduce the final cost of the EV.
Dr. Yogesh Bhatia, Founder of Detel said, “We appreciate the continuous efforts made by our government to push green mobility in India. The visionary move by the Rajasthan government is a step ahead towards motivating Indian customers for the faster adoption of electric vehicles. The added subsidy by the state government will encourage manufacturers like us to develop new and innovative product lines at the most disruptive price in order to push the concept of e-mobility in the country. This will not only boost the adoption of electric vehicles but will also generate employment at various levels”.
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