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https://e-vehicleinfo.com/ev-policies-and-subsidies-of-13-states-of-india/Currently, electric vehicles account for only 1.3 percent of total vehicle sales in India. Only 2.38 lakh electric vehicles were sold in FY21, compared to 1.86 crore petrol and diesel automobiles. Despite the difficult and stressful efforts to boost the use of electric cars in India, the country’s EV society remains indisposed.

For electric vehicles in India, this includes; An exemption for customs duty on EV parts, and the Revised Special Incentive Package Scheme, which provides 20% capital subsidy in special economic zones and 25% subsidy outside special economic zones (SEZs) for companies in electronics manufacturing.

The comparison done so far shows that the Electric Vehicle Policy of Maharashtra is the most suitable so far; For both the consumer and the manufacturers.

In this article further, we will be analyzing and supplementary discussing the Electrical Vehicle Policies & Subsidies in every state.

Keeping in mind the not-so-good state of the EV society in India, the industry is recently seen making developments, as today more than 13 states in India have notified electrical vehicle policies.

Taking a keen look at these 13 states providing EV policies & Subsidies, Delhi, Maharashtra, and Gujarat are providing strong purchase incentives on EVs. 

Table of Contents

All 13 States EV Policies and Subsidies

The following is a total list of 13 states in India that announced EV policies and subsidies for electric vehicles.

Maharashtra EV Policies & Subsidies 

In Maharashtra, the EV policy is the most recent and is also said to be the most user-friendly for both the ones buying and the manufacturers.

If you are planning to buy an EV vehicle it is noted that it will be cheaper in Maharashtra than any other state. as the government of Maharashtra promises to provide an incentive of Rs 5000/kWh for all E-vehicle categories.

The maximum subsidy on electric two-wheelers is Rs 10000, Rs 30000 on electric three-wheelers, Rs 150000 on electric four-wheelers, and Rs 20 lakh on electric buses. Into the bargain, if you exchange your old petrol two-wheeler you would be granted a subsidy of Rs 7000 on your new electric two-wheeler purchase.

To top it all up other than financial incentives, Maharashtra assures to provide incentives to the manufacturing company if they deliver a five-year battery warranty to their customers.

Maharashtra Electric Vehicle Policy 2021: Highlights 


  • Accelerate adoption of battery electric vehicles: to contribute 10% of the registration of the new vehicle by 2025.
  • Achieve 25% electrification of public transport and last-mile delivery in 6 targeted urban areas by 2025. 
  • convert 25% of Maharashtra state road transport corporation’s (MSRTC) existing bus fleet to electric.
  • make Maharashtra the country’s top producer of BEVs in India in terms of annual production capacity.
  • Development of 2375 Public & Semi-public charging stations in 7 major urban areas and founder national highways.
  • from April 2022, all new government vehicles will be electric vehicles.
  • at least 25% of the urban fleet operated by the fleet aggregators (Ecommerce companies, delivery/ logistics players) in the state to transition to EVs by 2025. 
  • Formulation of various incentive plans for electric vehicles and associated infrastructure.
  • property tax rebates for installing private charging infrastructure within the society premises. 
  • The policy will encourage fleet aggregators to operate electric vehicles.
  • all the EVs sold in the state shall be expected from the road tax.
  • All Evs eligible under the policy shall be exempt from the registration charges.

Maharashtra EV & Related Infrastructure Policy, 2018

  • Target to increase the number of EV registrations in Maharashtra to 500,000 over the five-year policy period.
  • Generate an investment of US$3.4 million for the manufacturing of EVs.
  • Create jobs for 100,000 people.
  • Exempts EVs from road tax and registration fees over the policy period.
  • Enabling fuel stations to set up charging stations.

Gujarat EV Policy 

Gujarat is said to be the state with the largest subsidy, at Rs 10,000 per kWh. Electric two-wheelers are eligible for a maximum subsidy of Rs 20000, electric three-wheelers are eligible for a maximum subsidy of Rs 50000, and electric vehicles are eligible for a maximum subsidy of Rs 1.5 lakh.

The state has also declared a registration fee remission of a few hundred rupees, but unlike Maharashtra, it has not canceled the road tax, which may be as high as 6 percent. On the charging front, while Maharashtra is offering a maximum subsidy of Rs 5 lakh, the Gujarat government is offering a maximum subsidy of Rs 10 lakh.

Maharashtra is looking to set up over 2400 charging stations in just 7 cities in the coming years, Gujarat is looking at about 528 charging stations.

Gujarat Electric Vehicle Policy 2021

Following are the Highlights of Gujrat EV Policy 2021 to witness 2 lakh electric vehicles on the roads of Gujarat in the next 4 years, Chief Minister Shri Vijay Rupani declares Gujarat Electric Vehicle Policy 2021: Highlights 

  • Increase in the use of e-vehicles in the State in coming 4 years
  • Make Gujarat a hub for e-vehicles and various materials related to it
  • Encourage young startups and investors in the field of electric mobility
  • Control air pollution and keep the environment safe
  • Currently, 278 charging stations are available in the State for the charging of e-vehicles. Infrastructure for new 250 charging stations to come up, which takes total tally to 528
  • Petrol pumps will be approved establishing charging stations
  • Charging facilities to come up at housing and commercial infrastructures
  • E-vehicle registered at Gujarat RTO will be exempted from the registration fee, within four years, fuel worth 5 crore rupees will be saved
  • Minimum 6 lakh ton CO2 emission will be reduced
  • Subsidy up to Rs. 20 thousand for 2 wheelers, 50 thousand for 3 wheelers and up to 1.5 lakh for 4 wheelers will be directly credited to bank accounts through DBT
  • Gujarat will give double the amount of subsidy than any other state for e-vehicle per kilowatt
  • The State government will encourage and give subsidies to e-vehicle purchasers along with benefits from the Government of India’s Fame -2 scheme to encourage e-vehicles

Gujarat Draft EV Policy, 2019

  • Make Gujarat a manufacturing hub for EV and ancillary equipment.
  • Encourage Investment in electric mobility.
  • Aim of having 100,000 EVs on the road by 2022, which includes 80,000 two-wheelers or scooters, 14,000 three-wheelers, 4,500 cars, and 1,500 buses.
  • 100% exemption from registration fee and 50% exemption from motor vehicle tax.
  • 100% exemption from electricity duty for e charging stations.

Delhi EV Policy

The Delhi government is making small changes to its electric vehicle policy, which was established in 2020. Guidelines for an electric bike taxi scheme similar to the one proposed by the Karnataka government could be one of the additions.

The Delhi government’s electric vehicle strategy, which was launched in August 2020 with a three-year framework, is one of the most comprehensive in the country. The scheme provides a subsidy of Rs 5000 per kWh for electric two-wheelers up to a maximum of Rs 30000.

All electric scooters in India now have a battery capacity of 2-3 kWh, thus the highest subsidy you might get is Rs 15000. Electric three-wheelers are eligible for a subsidy of up to Rs 30000, and electric automobiles are eligible for a discount of up to Rs 1.5 lakh.

The Delhi government, like Maharashtra, offers financial incentives in the range of Rs 5000-7000, as well as waivers of road tax and registration fees for electric vehicles. The majority of states intending to implement charging infrastructure in cities are aiming for at least one public charging station in a 3X3 kilometer grid.

If successful, this should result in enough charging stations in densely populated cities throughout several states. Slow chargers are getting a lot of attention in Maharashtra and Delhi, with both granting large CAPEX subsidies.

NCT of Delhi, Delhi Electric Vehicles Policy, 2020

  • Aims to have at least 50% e-buses for all-new stage carriage buses procured for the city fleet, starting with 1,000 e-buses by 2020.
  • Aims for 25% of new vehicle registrations to be electric by 2024.
  • A purchase Incentive of INR 5,000 (US$68) per kWh of battery
  • capacity is provided for two-wheelers and is subject to a maximum
  • incentive of INR 30,000 (US$409) per vehicle.
  • The incentive for scrapping and de-registering old highly polluting two-wheelers.
  • A purchase incentive of INR 10,000 (US$136) per kWh of battery capacity
  • provided for electric four-wheelers (cars) (subject to a maximum
  • the incentive of INR 150,000 (US$2,039) per vehicle) for the first 1,000
  • e-cars registered in New Delhi after issuance of the policy.
  • Purchase Incentive of INR 30,000 (US$409) per vehicle to
  • owners of e-autos, e-rickshaws, and e-carts.

Major Incentives for various EV Segments in Delhi EV Policy 2020

Rajasthan EV Policies & Subsidies 

The Rajasthan state government aims to encourage the widespread use of electric cars by providing incentives on the upfront cost of EVs for early adopters. Rajasthan’s electric vehicle incentives, which include two- and three-wheelers, are slightly different from those given by other states.

EV customers would be refunded the State Goods and Service Tax amount, according to a notification issued by the Rajasthan Transport Department. They will also receive a one-time award on top of that.

Rajasthan, unlike other states, would pay EV customers a flat payment based on the battery capacity of their vehicle. This award will be available to vehicles purchased between April 1, 2021, and March 31, 2022, and registered until March 20, 2022. Oh, and don’t forget that to qualify for any of the advantages given under Rajasthan’s EV policy, the electric car must be purchased in the state.

Rajasthan Revised EV Policies: Highlights

  • Issued in July and its valid till March 31, 2022
  • All Electric Vehicles purchased before March 2022 will be eligible for a state goods and services tax (SGST) refund. 
  • Addition purchase incentives for electric two-wheeler and three-wheeler.  

EV Type/Battery Capacity: EV Subsidy

EV Type Battery capacity Subsidy
Up to 2 kWh ₹5,000
Electric two-wheeler Up to 4 kWh ₹7,000
Up to 5 kWh ₹9,000
Over 5 kWh ₹10,000
EV Type Battery capacity Subsidy
Up to 3 kWh ₹10,000
Electric three-wheeler Up to 4 kWh ₹15,000
Up to 5 kWh ₹17,000
Over 5 kWh ₹20,000

Karnataka EV Policy 

If you buy an EV in Karnataka, you may be eligible for a subsidy via the union government’s FAME plan, which may be worth up to $15,000 per kWh, but the state does not give the same level of support as Gujarat, Maharashtra, or Delhi.

The Karnataka government recently announced the start of an electric bike taxi system that allows aggregators such as Rapido, Ola, and Uber to register as e-bike taxi operators. These taxis would be permitted to travel for 10 kilometers and may help electric vehicles gain traction in the final mile transportation segment.

In 2017, Karnataka became the first state to implement an electric car policy. The state recently changed its policy to provide investors in the electric car sector with a 15% capital incentive. It has also been determined that in the next 2-3 years, 50 percent of state government cars would be replaced with electric vehicles.

Karnataka EV Policy 2021 -Addition

The cabinet decided to give a 15% capital subsidy to investors in the electric vehicle (EV) sector on the value of fixed assets over five equal annual payments, with the maximum land covered under this incentive being 50 acres.

Karnataka- Electric Vehicles and Energy Storage Policy, 2017

  • 100% of three and four-wheeler moving goods will be encouraged to transition to electric by 2030.
  • Local public transport bus fleets to introduce 1,000 EV buses.
  • Aim to set up 112 EV charging stations in Bengaluru.
  • Focus on venture capital fund for e-mobility start-ups and creation of a secondary market for batteries.
  • Incentives such as interest-free loans on net SGST for EV manufacturing enterprises.

Telangana Electric Vehicles Policy 

Telangana’s electric vehicle policy was implemented in 2020. The state exempts all types of electric cars from paying road taxes and registering, but it does not yet provide the kind of incentives that Maharashtra, Delhi, and Gujarat provide.

The state does, however, provide some substantial supply-side incentives, including a capital investment subsidy of up to Rs 30 crore, SGST refund of up to Rs 5 crore per year, electricity tariff reduction of up to Rs 5 crore, and interest subsidy of up to Rs 5 crore. On a case-by-case basis, the state also provides tailored incentives to large and important projects.

Read more: Cheapest Electric Cars Available in India

Triton EV, a US-based electric car manufacturer, has inked a Memorandum of Understanding with the Telangana government to spend over 2100 crore in an electric vehicle production factory.

Officials from the Telangana government are presently examining the restructured FAME plan as well as other state government policies and may make modifications to their policy, which was announced in 2020.

Telangana Electric Vehicle and Energy Storage Solution Policy, 2020

  • 100% exemption of road tax and registration fee for
  • the initial electric vehicles purchases.
  • EV sales target to achieve 80% two-and three-wheelers (motorcycles, scooters,
  • auto-rickshaws), 70% commercial cars (ride-hailing companies, such as Ola and
  • Uber), 40% buses, 30% private cars, 15% electrification of all vehicles by 2025.
  • Job creation for 20,000 workers by 2025 through EVs in shared mobility,
  • EV manufacturing, and charging infrastructure development

Andhra Pradesh EV Policies & Subsidies 

Andhra Pradesh’s Electric Mobility Policy aims at a goal of 1 million EVs by 2024 and an establishment of 10,000 slow and fast EV charging stations by 2024.

The government of Andhra Pradesh further aims to stop the registration of petrol and diesel vehicles. All government vehicles would be transformed into electrical vehicles assures the government.

Andhra Pradesh Electric Mobility Policy (2018-23)

  • The goal of 1 million EVs by 2024.
  • The goal of 100,000 slow and fast EV Charging stations by 2024.
  • Government plans to stop the registration of petrol and diesel cars
  • by 2024 in the upcoming capital city of Amaravati.
  • All government vehicles, including corporations, boards, and
  • government ambulances to be electric by 2024.

Uttar Pradesh EV Policies & Subsidies  

The state government looks forward to rolling out a total of  1 million EVs throughout all segments by 2024. There are plans of deploying 1000 electric buses in the state by 2030. 200,000 charging stations to be put up and a goal to turn 70% of the public transportation to EVs by 2030 under the 10 identified green routes.

Uttar Pradesh Electric Vehicles Manufacturing and Mobility Policy, 2019

  • Rolling out 1 million EVs combined across all segments by 2024.
  • The goal of 1,000 electric buses deployed in the state by 2030.
  • The target of achieving 70% electrification of public transportation by 2030 on
  • Identified green routes in 10 identified EV cities (Noida, Ghaziabad, Meerut,
  • Mathura, Agra, Kanpur, Lucknow, Allahabad, Gorakhpur, and Varanası).
  • Set up around 0.2 million slow and fast charging and swapping stations by 2024.
  • Establishes a single-window system in place for all approvals
  • required for EV and battery manufacturing units.

Madhya Pradesh Electric Vehicle Policies and Subsidies

In the next four years, the government of Madhya Pradesh aims to integrate 2,200 electric buses into the public transportation system. Shared e-rickshaws and electrical auto rickshaws will have incentives like exemption from road taxes and 100% waiver on parking chargers at any municipal corporation-run parking facility for 5 years.

The government aims to stop registering new internal combustion engines (ICEs). Introduction of fast and accessible charging infrastructure

Madhya Pradesh Madhya Pradesh Electric Vehicle Policy, 2019

  • Rapid EV adoption and contribution to 25% of all new
  • public transport vehicle registrations by 2026.
  • Some cities will stop registering new Internal combustion engine (ICE) autos.
  • Enable faster adoption by ensuring safe, affordable,
  • and accessible charging infrastructure
  • Shared e-rickshaws and electric auto-rickshaws incentives: free
  • cost of permits, exemption/reimbursement from road tax/vehicle
  • registration fees for 5 years, and 100% wavler on parking chargers
  • at any municipal corporation-run parking facility for 5 years.

Bihar EV Policy 

The government prioritizes the electrification of the rickshaws by 2022. The goal of introduce charging stations at every 50km along the highway. An extra incentive of Rs 7,000 per kWh is proposed in Bihar for e-2Ws and e-3Ws that use lithium-ion batteries rather than traditional lead-acid batteries. These are novel methods to subsidy design that organize and deliver the subsidy in a way that maximizes its impact.

Bihar Draft Bihar Electric Vehicle Policy, 2019

  • Priority to the electrification of rickshaws. Target of converting
  • all paddle rickshaws to e-rickshaws by 2022.
  • Promotion of the manufacturing of e-rickshaws.
  • Set up fast-charging stations at Intervals of 50 km on state and national
  • highways and charging stations at commercial and residential locations,

Tamil Nadu Electric Vehicle Policy -EV Policy 

The Tamil Nadu government has announced a complete exemption from motor vehicle taxes for battery-powered cars (Electric Vehicles)

. According to the State Government’s decree, after careful consideration, it has decided to exclude all battery-operated transportation and non-transport vehicles from paying any taxes. The state has taken several steps to improve the electric vehicle system in the state.

Tamil Nadu intends to build the country’s first park dedicated only to the electric car manufacturing eco-system. Units that purchase land through a sale or lease will be eligible for a stamp duty exemption of 100 percent until December 2022. SIPCOT, SIDCO, and other government organizations will give a 15% subsidy to units that secure land from them.

If the investment is made in the southern areas, they will receive a 50% subsidy.

Tamil Nadu Electric Vehicle Policy, 2019

  • Electrify 5% of buses every year by 2030, and convert shared mobility fleets,
  • institutional vehicles, and e-commerce delivery and logistics vehicles to EVs by 2030.
  • Convert all auto-rickshaws in six major cities to EVs within 10 years.
  • Establish venture capital and business Incubation service
  • hubs to encourage electric vehicle start-ups.
  • EV-related and charging Infrastructure manufacturing units will
  • receive 100% exemption on electricity tax till 2025.

Kerla EV Policy

Following are the Highlights of the Kerala EV Policy- 

Kerala Electric Vehicle  Policy 2019: Highlights 

  • Targeted of bringing one million Electric vehicles to the state by 2022 and 600 electric buses in public transport by 2025. 
  • viability gap funding for e-buses and government fleet.
  • incentives such as tax breaks, road tax exemption, toll charge exemptions, free permits for fleet drivers, and free parking. 
  • priority to EV component manufacturing

Himachal Pradesh EV Policy

By 2025, the major goal is for battery electric vehicles (BEVS) to account for at least 15% of new vehicle registrations. He stated that the government will encourage the use of electric vehicles across all segments and build a network of public charging stations.

In large cities and towns, at least one charging station would be built inside every 1km x 1km grid, and at least one slow-charging station (on each side) would be built every 25km on state roads.

The government of Himachal Pradesh has proposed a new Electric Vehicle Policy for the year 2021, to promote sustainable, safe, environmentally friendly, inclusive, and integrated transportation solutions, as well as establishing Himachal as a model state for EV adoption among mountainous states.

Himachal Pradesh Draft Electric Vehicle Policy, 2019

  • Aims for 100% transition to EVs by 2030.
  • Draft promotes the creation of dedicated charging infrastructure and includes a provision for charging points in commercial buildings.

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For freshly acquired electric cars, Delhi, Maharashtra, Karnataka, Kerala, Bihar, Uttarakhand, Tamil Nadu, Andhra Pradesh, Telangana, and Punjab now provide a 100 percent road tax exemption.

The announcement made by Tesla would introduce the Model 3 in India, as well as the debut of Ola Electric, has sparked a lot of interest. While Ola plans to debut its electric scooter in less than 20 days and wants to sell over a million units this year, Tesla will shortly begin sales in India and is looking into the potential of producing Tesla automobiles there in the future.

Tesla is in negotiations with at least six states, which have given them land and other incentives. State competition may not only lower EV pricing for consumers, but it may also provide electric car manufacturers with some extremely profitable agreements.

Elon Musk and Karnataka CM and Union Road Transport Minister, Nitin Gadkari, confirmed Tesla’s presence in India earlier this year, which came as a pleasant surprise to Indian electric car fans. The Company, Tesla intends to open showrooms in Mumbai, Delhi, and Bangalore in the initial phase of its Indian expansion.

Aside from the fiscal incentives that are lowering the upfront cost and total cost of ownership of EVs, most states are enacting significant regulatory reforms and tax exemptions for EVs, such as an open permit system for e-autorickshaws, waivers of road tax and registration fees, and provision for EV reserved parking, all of which would go a long way toward making EVs competitive with their ICE counterparts.



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