Rajasthan Announces EV Policy, Offers GST Refunds And Cash Subsidies To EV Buyers
After Maharashtra, Gujrat, and Delhi, Rajasthan becomes the latest state to offer incentives to buyers of Electric Vehicles. Unlike other states, Rajasthan will refund the state component of GST, SGST to the buyers of Electric 2wheelers and Electric 3Wheelers, the actual amount will depend on the battery capacity of the vehicle.
The State Govt of Rajasthan is focusing on-demand generation and will offer additional cash incentives to buyers based on the battery capacity of the EVs being purchased. For Electric 2wheelers with up to 2kWh, the incentive is going to be Rs. 5000 and going up to Rs. 10,000 for more than 5kWh. For Electric 3Wheelers with battery capacity up to 3kWh, the amount will be up to Rs. 10,000, while E3W’s with a battery cap of more than 5kWh will get Rs. 20,000 rebates.
The state is not extended the benefits to the Electric 4wheelers and buses for the time being. The subsidies given by the state are also lower than in other states like Delhi and Maharashtra.
The incentives offered are on top of the subsidies extended by the central government under phase-2 of the Faster Adoption and Manufacturing of Electric and hybrid vehicles (FAME-2) scheme.
In just one year, we have seen multiple states offering subsidies to Electric Vehicles with the aim of demand generation and increasing production capacity. Delhi was the first state to announce a comprehensive EV policy in August 2020, with an aim of registering 5 lakh electric vehicles in the city by 2024, under its EV policy. Most recently we saw Maharashtra announcing its EV policy extending it charging stations and electric vehicle manufacturers. Tamil Nadu with its EV policy aims to become an EV hub of the country and get Rs. 50,000 crore investment for the state. 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.
