2021 Maharashtra EV Policy offers increased incentives

The Maharashtra government has approved a Rs 930 crore EV scheme. Under the newly revised policy, electric vehicle buyers will be able to benefit from incentives ranging between Rs 44,000 and Rs 2.5 lakh.

The Maharashtra government has revised its EV policy in an attempt to accelerate the adoption of electric vehicles (EVs). Along with the adoption of EVs, the government aims to make the state the top-most producer of EVs in India in terms of annual production capacity. The state government has sanctioned a Rs 930 crore policy, valid till 31 March 2025, and announced that the EVs will be exempted from road tax and registration charges. The policy aims to ensure that a 10% share of EVs in the total new vehicle registrations by 2025.

The revised policy also offers an ‘early bird’ incentive to the buyers of two, three, and four-wheeler Evs before 31st December 2021. This includes an incentive of Rs 5,000 per kWh of the total battery capacity. There is also an assured buy-back and battery warranty incentive of Rs 12,000 on two and three-wheelers.

The basic incentive for two-wheelers has been capped at Rs 10,000, but the government also offers an early bird incentive of Rs 15,000. Additionally, there is a scrappage incentive of Rs 7,000 for 2W-EV.

Along with the basic incentive of Rs 30,000 for electric three-wheelers, the government has offered Rs 35,000 as an early bird bonus on the purchase of 3W-EV before 31st December.

The 4W-EV segment seems to have benefited from this scheme the most. Before December 31, 2021, the government has set Rs 1.5 lakh as the basic incentive; however, post the set date, buyers will get Rs 1 lakh as the basic incentive. The early bird incentive has been set at Rs 1 lakh for buyers opting to buy battery-powered four-wheelers before December 31, 2021.

The Maharashtra government is also aiming to ensure that Mumbai, Pune, Nagpur, Aurangabad, Amravati, and Nashik achieve 25% electrification in public transport and last-mile delivery vehicles by 2025. Also from April 2022, all new government vehicles in Maharashtra will be EVs. Around 2,500 charging stations, in 7 major urban cities and 4 major highways will be developed. Of those, 1,500 will be set up in the Greater Mumbai region, 500 in Pune, 150 (each) in Nagpur and Nashik, 75 in Aurangabad, 30 in Amravati, and 20 in Solapur. 

Those setting up the first 15,000 slow chargers will be eligible for an incentive of up to Rs 10,000 per charger, and those establishing the first 500 fast chargers will be eligible for a subsidy of up to Rs 5 lakh per charger. The policy also states that the urban local bodies will be encouraged to provide tax rebates to buyers who wish to install private charging stations in their own premises.

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