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Maharashtra announces sops up to Rs 20 lakh for electric vehicles – Business Standard

Electric vehicles in Maharashtra will attract financial incentives ranging from Rs 10,000 to Rs 20 lakh and housing societies will earn rebates in property tax for setting up charging stations as part of government’s big e-mobility push.

The state government announced its electric vehicle policy on Tuesday offering sops for fresh purchases, scrappage and manufacturing of e-vehicles, components and batteries.

The state hopes EVs will make up 10 per cent of all new vehicle registrations by 2025. Separate targets have been laid down for two-wheelers (10 per cent), four-wheelers (5 per cent) in the electric segment. Fifteen per cent of state transport buses will be converted to electric by 2025.

With its new measures Maharashtra joins other states including Delhi, Gujarat, Karnataka and Tamil Nadu in encouraging e-mobility.

“We have studied the EV policies of other states and countries before deciding our policy,” state environment minister Aditya Thackeray said.
Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV) said the Maharashtra government announcement is not only encouraging for the EV industry but also solidifies India’s vision of becoming a global EV hub.

According to him, these much-awaited measures offer to bridge the chasm between awareness and consumer sentiment towards e-mobility.

“We hold steadfast optimism towards states announcing a revised policy with a special focus on demand creation. An inclusive and pragmatic approach to E-mobility and charging infrastructure is imperative to boost innovation and increase uptake among consumers,” said Gill.

All EVs in the state will be exempt from road tax and registration charges under the scheme. Electric two-wheelers and cars would get maximum incentive of Rs 10,000 to Rs 1.5 lakh, respectively while buses would be eligible for Rs 20 lakh. The number of vehicles getting incentives will be capped.

The government will encourage urban local bodies to give rebate in property tax to housing societies setting up charging stations and promote the manufacturing of vehicle batteries under the PLI scheme of central government.

“We want Maharashtra to become the leading destination of EV ecosystem through demand and supply side incentives,” said Ashish Kumar Singh, additional chief secretary, Maharashtra government.

Tarun Mehta, CEO and Co-founder, Ather Energy also lauded the policy. “The Maharashtra government’s new EV Policy is extremely comprehensive and has taken into account the entire EV ecosystem. Early-bird incentive is a great mechanism to jump start things, as well as to drive festive sales.”

In Maharashstra, Ather Energy has its retail outlets in key cities like Mumbai, Pune and plans to expand to Nashik and Nagpur soon. “Such progressive policies introduced by the state governments have the potential to drive faster adoption of electric vehicles in the country,” Mehta said.