Rajasthan announces subsidies for e-2W, e-3W buyers. Know what's there for you

Rajasthan EV policy focuses on-demand creation by offering cash benefits to electric two and three-wheeler buyers.The cash subsidy amount of the Rajasthan EV policy is lower than Delhi, Maharashtra and Gujarat.
By : HT Auto Desk
| Updated on: 18 Jul 2021, 10:36 AM
Rajasthan EV policy doesn't offer cash benefits for e-4Ws and electric buses. (REUTERS)
Rajasthan EV policy doesn't offer cash benefits for e-4Ws and electric buses. (REUTERS)
Rajasthan EV policy doesn't offer cash benefits for e-4Ws and electric buses. (REUTERS)
Rajasthan EV policy doesn't offer cash benefits for e-4Ws and electric buses.

Rajasthan becomes the latest state to announce electric vehicle policy after Maharashtra, Gujarat, Delhi. The Rajasthan Ev policy focuses on-demand creation for zero-emission vehicles by introducing cash subsidies for the electric two and three-wheelers.

(Also Read: 2021 Maharashtra EV policy: Five key takeaways)

The policy states that Rajasthan will refund the state component of GST (SGST) to the consumers of the EVs in the state. The buyers who will purchase EVs between April 2021 and March 2022 will receive this benefit.

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Over and above this SGST refund, all the electric two and three-wheeler consumers will be eligible for additional cash subsidies. Amount of this cash subsidy will range between 5,000 and 20,000, depending on the size of the battery.

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The electric two-wheelers will receive cash benefits between 5,000 and 10,000 depending on battery capacity between2 kWh and over 5 kWh. Electric three-wheelers on the other hand will be eligible for cash benefits between 10,000 and 20,000, depending on battery capacity between 3 kWh and more than 5 kWh.

However, unlike other states, the Rajasthan government will not provide any cash subsidies for electric passenger vehicles or electric buses. Also, the quantum of EV subsidy for two and three-wheelers are lower than in Maharashtra, Gujarat and Delhi.

Two and three-wheelers have been the most dominating electric vehicles in the country's zero-emission vehicle market. Increased buyer preference for personal vehicles due to Covid-19, surging fuel prices, increased cost of maintenance for ICE vehicles have prompted consumers to opt for e-2Ws. Electric three-wheelers on the other hand have remained the low hanging fruit for the fleet operators, e-commerce aggregators, last-mile delivery providers. These reasons have helped e-2W and e-3W sales to grow. Rajasthan government aims to boost the sales of EVs in these two segments.

Over the past year, several state governments across India have announced their own respective EV policies to promote electric mobility. Some of them have focused on both demand creation and production boosting through subsidies. On the other hand, some have focused only on-demand creation. States like Tamil Nadu has focused on production incentives only.

Tamil Nadu announced a policy to become India's EV hub in September 2019 aiming to draw 50,000 crore investment. Delhi was the first state to announce a comprehensive EV policy in August 2020. The national capital aims to register 500,000 electric vehicles in the city by 2024, under its EV policy.

Gujarat announced its EV policy in June 2021 targeting 200,000 EV registration. This include 110,000 e-2Ws, 70,000 e-3Ws and 20,000 e-4Ws. Maharashtra too announced its all-encompassing EV policy in July 2021.

First Published Date: 18 Jul 2021, 10:19 AM IST
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