Rajasthan Electric Vehicle Policy 2021: Affordable EVs & Subsidies upto ₹20,000 for eRickshaws

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Ashok Gehlot
Ashok Gehlot

Rajasthan has released its Electric Vehicle Policy for 2021, joining Goa, Delhi, Gujarat, Maharashtra, and West Bengal as the latest states to do so. The policy aims to increase the state’s sales of electric two-wheelers (E2W) and electric three-wheelers (E3W), also known as e-rickshaws.

The Rajasthan government last week introduced its electric vehicle policy 2021 in which it stated that the state will reimburse state goods and services tax (SGST) on the sale of electric vehicles (EV) in Rajasthan. The SGST refund would be calculated using the SGST amount specified in the bill of sale. E2W and E3W are eligible for subsidies based on their battery capacity.

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Looking closer, it becomes clear that Rajasthan’s subsidies are significantly lower than those offered by states such as Gujarat.

The Gujarat EV Program covers a 20,000 ($270) subsidy for E2Ws costing up to 150,000 ($2,018); a 50,000 ($673) subsidy for E3Ws costing up to 500,000 ($6,731); and a 150,000 ($2,018) subsidy for electric cars costing up to 1.5 million ($20,193).

In addition, no subsidies for the purchase of electric cars and buses were offered in Rajasthan, and there was no mention of EV charging infrastructure. There is no major subsidy for electric vehicles or SUVs.Some may be surprised to learn that the policy excludes electric cars and SUVs and does not provide significant incentives to buyers of such vehicles. Only buyers of electric two- and three-wheelers are eligible for the one-time subsidy.

The policy does state, however, that all-electric vehicles sold until March 2022 will be eligible for SGST reimbursement, so buyers of electric cars and SUVs will be able to take advantage of that benefit, even if it is only a small portion of the vehicle’s cost.

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Rajasthan EV policy would make electric vehicles more affordable in the state of Rajasthan with added benefits. Since last year, several states have announced EV policies. Gujarat recently announced a policy aimed at introducing 200,000 electric vehicles to the state’s roads over the next four years. 110,000 E2Ws, 70,000 e-rickshaws, and 20,000 electric cars would be among them.

Maharashtra and Goa have both released revised electric vehicle policies. While Maharashtra aims to convert at least 25% of the state’s urban fleet operated by fleet aggregators or operators to electric vehicles by 2025, Goa has proposed that all commercial two-wheelers in the state switch to electric by December 31, 2025.

Such new incentive schemes by the state government would not only reduce pollution but would also boost up the production of the manufacturing of electric vehicles and would provide jobs to thousands of Indians. This news was welcomed by all the EV manufacturers and they said that such incentives would not only help in sustainable development but would also make electric vehicles more affordable. 

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