Central and State Government Subsidies for Electric vehicles in India

If you want to buy electric vehicles in India, check out the central government subsidy for electric vehicles in India. Also, the state govt provides some subsidies for EVs. We will find out, the state government subsidies for electric vehicles in India.

The motto of the Indian Government is verdant Environment and Fresh air to make it true they are shifting their focus toward Fossil fuel-free EVs. The Central and State Governments of India are implementing many subsidies (incentives) to increase its usage among peoples

Interestingly, 1990 was the first instance electric vehicles were introduced due to insufficient technology the scheme was withdrawn slowly. In recent times we have many advanced technologies and Electric vehicles are in refurbish process.

Central government subsidy for electric vehicles in India

The Government of India is working in full fledge to stop the usage of petrol and diesel vehicles and turn the users towards Electric vehicles. But many people feel that the price of EVs is not affordable for them.

To come out of this mindset and purchase the vehicle Central Government is providing subsidies directly and indirectly and also introduced a scheme called Faster adoption and manufacturing of Electric vehicles.

The scheme was formed under the National Mission of Electric Mobility 2011/ National Electric Mobility Mission Plan 2020(NEMMP) and unveiled in 2013.

Faster Adoption and Manufacturing of Electric Vehicles Scheme

For faster adoption and manufacturing of electric vehicles, Central Government has introduced 2 phases during this time the registration fee is completely free and 5% of GST is less than the actual amount for all Electric vehicles we purchase.

The Government also offers Rs. 1.5 lakh tax-free for customers those who take loans for purchasing two-wheeler and four-wheelers for their use. This offer is valid only for first-time purchases.

Phase-1

Initially, phase 1 was scheduled for 2 years from APRIL-1 2015 to 2017 but later on, it was extended for a further two years to 2019. During this stage, the fund was distributed to vehicles with different categories like Mild Hybrid, Strong Hybrid, Plug-in hybrid, pure electric technology, and battery specification.

In the 4-year duration, 359 crore amount was spent on 137 models of electric vehicles. Furthermore, 520 charging stations were also constructed in cities like Chandigarh, Jaipur, Bangalore, and Delhi under this system for a sum of RS 42 crore and amount of 280 crores spend for 425 buses in various states of India

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Phase-2

The budget allocated for this phase was 10,000 crores for 7000 buses, 10 Lakh 2-wheeler, 5 Lakh 3-wheeler, 55,000 4-wheelers and including electric charging stations for 3 years from 31 March 2019 – 31 March 2022as per plan.

since this phase was successful among people so it was extended for another two years up to 2024. During this turn around the subsidies of the two-wheeler also reversed to Rs.15,000 per kWh from Rs.10,000 per kWh and incentive cap of 20% to 40% of total vehicle cost

The scheme is eligible for vehicles with Advanced chemistry batteries, achieving minimum technical criteria and filed as motor vehicles under CMVR. we can climb incentives for electric two-wheeler that we purchase for our personal use.

Other electric vehicles that we obtain for our personal use are not eligible for Government provided subsidies. The system also covers Ex-factory costs for cars under Rs.15 lakhs. The incentive offered in this scheme are

S.no Vehicle Total Approximate incentives Approximate Size of Battery
12-wheeler Rs.15,000 per kWh 2 KWh
23-wheeler Rs.10,000 per kWh 5 KWh
34-wheeler Rs.10,000 per kWh 15 KWh
4E-buses Rs.20,000 per KWH 250 KWh
5E-trucks Rs.20,000 per kWh
Central and State Government Subsidies for Electric vehicles in India

State Government subsidy for electric vehicles in India

Apart from the central government, every state government also provides incentives for electric vehicle buyers and users.

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Subsidies given by Maharashtra Government for Electric Vehicles

Maharashtra ranks in the top position for providing the number of beneficiaries under the Fame scheme. Maharashtra Government is second to conclude its Subsidies for Electric two-wheeler. The Scheme was established to promote the production and sales of the vehicle in the State.

It was enrolled from July 23 2021 to December- 31 2021 but came to an end on March 31, 2022. The inability to control the situation for the demand created by Electric vehicles in the state was the main reason for withdrawing. For 3-wheeler Maximum of Rs.30,000 subsidies are allocated by Government.

VehicleSubsidies per (kWh)Maximum subsidiesExemption in Road tax
2-wheeler Rs. 5,000 Rs. 25,000 100%
4-wheeler Rs. 5,000 Rs. 2,50,000 100%
Central and State Government Subsidies for Electric vehicles in India

Kerala Subsidy for Electric Vehicles

Kerala is voted as one of the best tourist places in India by visitors with an eye-catching greenish environment. Many less populated states provide subsidies for electric vehicles to bring awareness to people.

But, shockingly, a state like Kerala has failed to provide any eye-catching scheme for electric vehicles to maintain its reputation and safeguard the environment.

The only scheme the state possess is Rs. 25,000 to Rs. 30,000 for the first 10,000 e-rickshaws and a road tax discount of 50% for all Electric vehicles.

Subsidies given by Karnataka Government for Electric Vehicles

Earlier in 2017 Karnataka Government was the first to introduce a state policy for Electric vehicles. But in Phase 2 there are no Subsidiaries for Electric vehicle buyers instead of that they are focusing on EVs Manufactures.

This includes free of cost for stamp work, repay the amount for land conversion, Exemption in electricity tariff, reduction in registration charges, Interest-free loans on SGST, and Incentive for fluent treatment plants.

  • Investment promotion Subsidies
  • Micro units 25% for Fixed Assets (max Rs. 15 Lakh)
  • Small units 20% for Fixed Assets (max Rs. 40 Lakh)
  • Medium units Rs. 50.00 Lakh

Subsidies given by Delhi Government for Electric Vehicles

Delhi Ranks 1st in the Indian population and the usage of Vehicles is also high in the state people live in polluted atmospheres to overcome these circumstances many state-level schemes are made to promote Electric vehicles.

Delhi Government Issued a copy of beneficiary by subsidies out of 13,9945 registered EVs in Delhi 82,149 owners were given subsidies and The Government has mentioned several factors for those who did not benefit

  • Those who did not apply
  • one who does not have proper documents
  • Non-eligibility vehicles under the Delhi Electric vehicle policy
VehicleSubsidies per (kWh)Maximum subsidiesExemption in Road tax
2-wheeler Rs. 5,000 Rs. 30,000 100%
4-wheeler Nil Nil Nil
State Government subsidy for electric vehicles in India

Subsidies given by Assam Government for Electric Vehicles

Even though the state has a minimum population, the government is taking various measures to give different subsidies to promote electric vehicles.

By supporting Electric vehicles and their component manufacturing units based on the size

  1. For large industries 10% of the cost of plant and Machinery up to Rs. 10 crores
  2. For medium industries 20% of the cost of plant and Machinery up to Rs. 1 crore
  3. For small industries 20% of the cost of plant and Machinery up to Rs. 50 Lakhs
  4. For mini-industries 20% of the cost of plant and machinery up to Rs. 15 Lakhs
Vehiclesubsidies per(kWh)Maximum subsidiesExemption in Road tax
2-wheeler Rs. 10,000 Rs. 20,000 100%
4-wheeler Rs. 10,000 Rs. 1,50,000 100%
State Government subsidy for electric vehicles in India

Subsidies given by Bihar Government for Electric Vehicles

Bihar is on the list of Developing State and to prove it true the Government are taking various Measures in providing incentives for Electric vehicles.

Some of Bihar’s additional incentives include Rs. 7,000 per kWh for an electric rickshaw, Manual pedal rickshaws are paid Rs. 10,000 to modify as e-rickshaw.

If the user is included in the poverty line or belongs to MBC or S.C/ST Rs. 8,000 is awarded as Top-up subsidies.

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VehicleSubsidies per (kWh)Maximum Subsidies Exemption in Road tax
2-wheeler Rs. 10,000 Rs. 20,000 100%
4-wheeler Rs. 10,000 Rs. 1,50,000 100%
State Government subsidy for electric vehicles in India

Subsidies given by Gujarat Government for Electric vehicles

The state also has a maximum incentive of Rs. 50,000 for 3-wheelers. Gujarat’s other subsidies system for Electric Vehicles looks smarter but the Exemption in Road tax is concerning because other states have a better record in Road tax

VehicleSubsidies per (kWh)Maximum subsidiesExemption in Road tax
2-wheeler Rs. 10,000 Rs. 20,000 50%
4-wheeler Rs. 10,000 Rs. 1,50,000 50%
State Government subsidy for electric vehicles in India

Subsidies given by Meghalaya Government for Electric vehicles

The State has ex-factory prices for different vehicles 2-wheeler Rs.1.5 Lakh,3-wheeler Rs.5 Lakh,4-wheeler Rs.15 Lakh and for hybrid 4-wheeler Rs.15 Lakh.

Vehicle typeSubsidies per (kWh)Maximum subsidiesExemption in Road tax
2-wheeler Rs. 10,000 Rs. 20,000 100%
4-wheeler Rs. 4,000 Rs. 60,000 100%
State Government subsidy for electric vehicles in India

Subsidies are given by Odisha Government for Electic vehicle

Odisha possesses several schemes for Electric vehicles like Many other States. The Electric vehicle schemes in Odisha were implemented from 1-September 2021 to until 31-st December 2025.

During this scheme, 15% of the amount for new EVs will be credited to their respective banks by the RTO they are registering.

VehicleSubsidies per (kWh)Maximum subsidiesExemption in Road tax
2-wheeler NA Rs. 5,000 100%
4-wheeler NA Rs. 50,000 100%
State Government subsidy for electric vehicles in India

Subsidies given by Rajasthan Government State Subsidies for Electric Vehicles

Rajasthan is the largest state overall, yet the state’s support for e-mobility is cause for concern. The Chief Minister of Rajasthan passed an amount of Rs.40 crore for electric vehicle purchase and recompense from 1 September 2021 to the next five years.

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VehicleSubsidies per (kWh)Maximum subsidiesExemption in Road tax
2-wheeler Rs. 2,500 Rs. 10,000 NA
4-wheeler Nil Nil Nil
State Government subsidy for electric vehicles in India

Subsidies given by West Bengal Government for Electric Vehicles

  • For primary Manufactures, there are free trade warehouse zones, testing, prototyping, parks, Logistics
  • Vendors and Suppliers have Exclusive EV parks, Plug and Play manufacturing facilities to commence production with low investment
VehicleSubsidies per (kWh)Maximum subsidiesExemption in Road tax
2-wheeler Rs.10,000 Rs.20,000 100%
4-wheeler Rs. 10,000 Rs. 1,50,000 100%
State Government subsidy for electric vehicles in India

Goa Subsidy policy for Electric vehicles

Goa is the first state to stop providing an electric vehicle incentive. Since tourism is the state’s primary source of income and many visitors like renting a two-wheeler or an electric two-wheeler, Goa has formally withdrawn from any incentives.

Electric scooters and bikes are not a good option for rental as they have poor charging stations, the infrastructure of the state are smaller than other states and the road tax is also minimum, and the government feels that there are no requirements for Subsidies.

Subsidies given by Other States for Electric Vehicles

States that we mentioned below do not provide any Subsidies for Electric Vehicles directly but provide free road tax.

States Exemption on Road tax
for 2-wheeler
Exemption on Road tax
for 4-wheeler
Tamil Nadu 100% 100%
Kerala 50% 50%
Uttar Pradesh 100% 75%
Telangana 100% 100%
Karnataka 100% 100%
Madhya Pradesh 99% 99%
Punjab 100% 100%
Andhra Pradesh 100% 100%
Central and State Government Subsidies for EVs in India

Source

Conclusion

The key reason for governments to provide subsidies for Electric vehicles is to bridge the gap created by the price tag between electric vehicles and conventional vehicles. With this incentive scheme Manufactures will be able to produce vehicles at a reasonable cost and no more cost will be a concern for buyers.

The lack of charging stations is also another big factor in the moderate sales of electric vehicles. If Government solves those issues, in a few more years we will be able to live in peace full environment and travel smoothly on the roads.

I hope you got an idea of central government subsidies for electric vehicles in India as well as various state government subsidies for electric vehicles in India.

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