In the coming time, a huge market for Electric Vehicles is going to be created in the country. While on one hand the trend of customers seems to be moving towards this segment of vehicles, on the other hand companies as well as governments are encouraging customers to buy electric vehicles.
The government has offered cash incentives to promote the purchase of electric vehicles. For example, under the Scheme for Manufacturing and Rapid Adoption of Hybrid and Electric Vehicles (FAME-II) – 2019, a subsidy of up to 40% of the total price for two-wheelers with a battery capacity of Rs 15,000 per kilo watt (kWh) will be given. has been At the same time, for four wheelers with a capacity of Rs 1.5 lakh per kilo watt (kWh), it is giving an incentive of Rs 10 thousand directly.
Apart from this, the central government has also kept the GST rate for electric vehicles below 5 percent, which is much lower than petrol and diesel vehicles. Not only this, if you are buying a vehicle for the first time by taking a loan, then under section 80EEB of the Income Tax Act, you are given a tax exemption of up to Rs 1.5 lakh for buying an EV.
In August 2021, the Ministry of Road Transport and Highways issued a notification announcing waiver of fee payment for issuing or renewing registration certificates to electric vehicles.
What facilities are being provided by which states on electric vehicles:
Delhi: Here two-wheeler customers are given a subsidy of Rs 5 thousand per kilowatt (up to 30 thousand). Apart from this, they are also exempted from registration and road tax. If one takes a four wheeler, he can avail subsidy of Rs 1.5 lakh at the rate of Rs 10 thousand per kilowatt. It is being told that the benefit of this scheme will be given only on the purchase of first 1000 electric cars.
Click here to know the models for which this subsidy will be given.
Gujarat: For the first 1.1 lakh electric two wheelers, a subsidy of Rs 10,000 per kilowatt is being given here. Customers can avail maximum benefit of Rs.20,000. Apart from this, they can also enjoy exemption in registration and road tax. At the same time, for the first 1000 customers who buy a car, a concession of Rs 1.5 lakh is being given at the rate of 10 thousand per kilowatt. Also, they are getting exemption on registration and road tax.
Maharashtra: Here all electric vehicles in the state are exempted from road tax and registration. At the same time, a subsidy of Rs 1000 is being given to the first one lakh EV buyers at the rate of Rs 5 thousand per kilowatt. If you buy an EV with 3 kWh battery capacity before December 31, 2021, you will be given a rebate of Rs 15,000 by the state government. At the same time, a discount of Rs 7 thousand will be given under the scrappage policy.
If you take a four wheeler in Maharashtra, you will get the same facilities as Delhi and Gujarat. But if you buy before December 31, 2021, you will get an additional benefit of up to Rs 1 lakh. The government has made EV-ready parking facility mandatory for all upcoming property projects in the state, such as apartments, government offices, schools, colleges, etc.
Meghalaya: The ‘Meghalaya Electric Vehicle Policy, 2021’ was implemented by the state government earlier this year. Under this, a target has been set to promote electric vehicles by 15 percent by 2025. Under the plan, customers can avail the same facilities as mentioned above.
A subsidy of Rs 10,000 per watt will be given for the first 3500 two wheelers. The maximum benefit that can be availed under the ex-factory price is Rs 1.5 lakh. At the same time, for the first 2,500 vehicles, subsidy will be given at the rate of Rs 4,000 per kilowatt. The maximum benefit that can be availed under the ex-factory price is Rs 15 lakh. Apart from this, road tax and registration have been exempted for both the vehicles.
Assam: According to this explainer, “The state plans to introduce 20,000 electric vehicles by 2026. In which there will be 1 lakh two wheelers, 75 thousand three wheelers and 25 thousand four wheelers. Apart from this, customers will also get the benefit of waiver of registration fee, road tax and parking charges.
West Bengal: The government has given exemption in road tax and registration fee.
Rajasthan: As per the state’s Electric Vehicle Policy, all buyers who bought EVs between April 1, 2021 and March 31, 2022, will be refunded the SGST (state GST levied).
According to the plan, customers will get a subsidy of Rs 5 to 20 thousand depending on the capacity of the battery for buying two wheelers and three wheelers. If you take a two-wheeler with 2 kWh battery capacity, then you can get a subsidy of Rs. 5 thousand. For 2 to 4 kW this amount is 7 thousand. Electric cars and SUVs are not covered in this scheme.
Telangana, Goa and Odisha: Government of Telangana waives off road tax and registration fee for the first 2 lakh EV two wheelers and 5 thousand four wheelers purchased and registered in the state.
At the same time, exemption in road tax and registration fee has been announced for two wheelers in Goa. Apart from this, this facility has also been announced for all electric vehicles in Odisha. Along with this, it has also been announced that 100% loan will be made available for the state government employees on the purchase of electric vehicles.
Karnataka: Electric vehicle buyers in Karnataka are eligible to get subsidy from the central government under the FAME-II scheme. However, under this, the same subsidy is not given to the customers as is available in Delhi or Maharashtra, but the facility of exemption from road tax and registration fee is also given under it.
Andra Pradesh: Road tax and registration fee have been waived here too.
need more effort
The government needs to make more efforts to promote electric vehicles. The then Union Minister of State for Heavy Industries Krishna Pal Gurjar told in the Parliament on 9 August 2021 that, at present, Andhra Pradesh, Delhi, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, Meghalaya, Gujarat, West Bengal For example, only 13 states have passed or notified policies to promote electric vehicles.
In such a situation, in view of the emerging challenges of climate change and rising prices of petrol and diesel, more and more states will have to come forward to promote electric vehicles. Also, as a pilot project, the technical and economic aspects will have to be made practical to run city buses and taxis on 100% electric mode.
Quoting ‘Car Dekho’, a leading car search venture in the country, the explainer reads, “Each scheme has a limited number of beneficiaries and not all electric cars sold in the country are covered under it. Today heavy taxes are being imposed on imported electric vehicles and hybrids, making the road for affordable electric vehicles more difficult.”
Original article – Rinchen Norbu Wangchuck
Editing – G N Jha
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