The government of Maharashtra today announced a comprehensive electric vehicle policy for 2021, aimed at accelerating the adoption of electric vehicles (EV) in the state and making Maharashtra a leading manufacturer of the global electric vehicle ecosystem And investment center. The overall goal is that by 2025, electric vehicles will account for 10% of new car registrations each year, or 300,000 electric vehicles.
- Three direct incentives for demand, supply and charging infrastructure
- Including non-financial incentives to train technical talent
- Aims to make Maharashtra a hub for the global electric vehicle ecosystem
Electric vehicle policy in Maharashtra
According to the policy, the government of Maharashtra will provide basic and early incentives for the purchase of electric two-wheelers, three-wheelers and four-wheelers. This includes an incentive of 5,000 rupees per kWh of vehicle battery capacity. For two-wheelers and three-wheelers, the highest rewards are 10,000 rupees and 30,000 rupees, respectively. At the same time, for four-wheelers, the maximum reward cap is Rs 150,000. Buyers will also be eligible for early bird rewards (purchase vehicles before December 31, 2021) and other benefits, as detailed in the table below.
|Maharashtra Electric Vehicle Policy Incentives|
|Vehicle Type||Battery capacity (kWh)||Basic reward||Early bird reward||Guaranteed repurchase and battery warranty rewards||Scrap reward||Total incentive|
|Electric two-wheelers (before December 31, 2021)||3||10,000 rupees||15,000 rupees||12,000 rupees||7,000 rupees||44,000 rupees|
|Electric two-wheelers (after December 31, 2021)||3||10,000 rupees||not applicable||12,000 rupees||7,000 rupees||29,000 rupees|
|Electric tricycle (before December 31, 2021)||7||30,000 rupees||35,000 rupees||12,000 rupees||15,000 rupees||92,000 rupees|
|Electric tricycle (after December 31, 2021)||7||30,000 rupees||not applicable||12,000 rupees||15,000 rupees||57,000 rupees|
|Electric four-wheelers (before December 31, 2021)||30||1,50,000 rupees||1,00,000 rupees||not applicable||25,000 rupees||2,75,000 rupees|
|Electric four-wheeler (after December 31, 2021)||30||1,00,000 rupees||not applicable||not applicable||25,000 rupees||1,75,000 rupees|
Accelerate the adaptation of electric vehicles
In addition to the aforementioned target of 10% of electric vehicle sales, Maharashtra has also targeted six cities (Mumbai, Pune, Nagpur, Aurangabad, Amrawati And Nashik) to achieve 25% electrification of public transportation and last-mile delivery of vehicles by 2025. Also from April 2022, all new government vehicles in Maharashtra will be electric vehicles.
The electric vehicle policy indicates that the state government plans to expedite and ensure the limited-time registration of electric vehicles, including electric vehicle fleets owned by aggregators, last-mile delivery providers, logistics companies, etc. The policy will encourage fleet aggregators to operate electric vehicles, because of the 2020 Motor Vehicle Aggregator Guidelines issued by the Ministry of Road Transport and Highways.
Pay more attention to charging infrastructure
The state government also plans to connect 7 major urban agglomerations (Mumbai, Pune, Nagpur, Aurangabad, Nasik, Amrawati and Solabur) and 4 major highways (Mumbai-Pune) , Mumbai-Nashik, Mumbai-Nagpur and Pune-Nashik).
Slow chargers (15,000 units) can be rewarded up to 10,000 rupees per charger, while fast chargers (500 units) can be rewarded up to 5,000 rupees per charger. The government document states that “urban local agencies will be encouraged to provide property tax rebates to residential owners who install private charging infrastructure in their houses.” ULB/PWD/MSRDC will determine where the charging infrastructure will be installed.
The proposed incentives are complementary to FAME II incentives and will be awarded to vehicle manufacturers based on the number of vehicles registered in Maharashtra.
Benefits of electric car manufacturers in Maharashtra
The electric vehicle policy document stated that “regardless of the location of the manufacturing unit in the state, all the benefits of the “D+” large-scale projects will be provided to these industries. The incentives will be applied from the date of policy notification and will be paid through industry, Ministry of Energy and Labor”.
The state government is setting up a mechanism steering committee, chaired by the chief secretary and other relevant departments’ chief secretaries, who will assess the effectiveness of the policy and revise the policy based on the ecosystem and environment of electric vehicles. There will be a climate change department to promote the “Electric Vehicle Monitoring Group.”
Green 2 Green Drive: Tata Nexon EV in Satpura’s safari
Delhi government informs electric vehicle policy
Thanks to the FAME II revision, electric two-wheelers are now more affordable