The policy plans to establish at least one Giga factory for manufacturing advanced chemistry cell batteries
Following the suit of several other states, the state government of Maharashtra has released its new Rs 930 crore Electric Vehicle Policy 2021 with an aim to incentive and promote the adoption of electric mobility in the state.
Among the many targets and directives set by the policy, one that stands out notably is its aim of targetting 10 per cent of EVs in new vehicle registrations by 2025, which would be 10 per cent of two-wheelers, 20 per cent three-wheelers and 5 per cent four-wheelers.
Unveiled by Environment Minister Aditya Thackeray, along with Minister of State for Environment Sanjay Bansode, the policy is also looking to help at least 25 per cent of the urban fleet operated by fleet operators/aggregators to transition to EVs, comprising e-com companies, last-mile operators, logistic players and mobility aggregators in the urban centres.
On the incentive front, the Maharashtra government will offer basic as well as early bird incentives on the purchase of electric two-wheelers, three-wheelers and four-wheelers. This includes an incentive of Rs 5,000 per kWh of the vehicle battery capacity. For two-wheelers and three-wheelers, the maximum incentive has been capped at Rs 10,000 and Rs 30,000, respectively. For four-wheelers, the maximum incentive is capped at Rs 1.50 lakh.
For EVs sold without battery, 50 per cent of the incentive will be given to the vehicle’s original equipment manufacturer and the rest to the battery swapping energy operator.
On the supply side, all benefits under the D-Plus category of megaprojects/other categories will be extended to the industries engaged in EV component manufacturing, vehicle assembly, battery assembly, cell manufacturing, recycling of EVs and EV batteries, irrespective of the location of the manufacturing unit in the state.
The policy also plans to establish at least one Giga factory for manufacturing advanced chemistry cell batteries, promote research and development, and innovation and skill development encompassing the entire EV ecosystem.
The policy also aims to develop a comprehensive charging network across the state, with a target to set up around 2,500 charging stations in seven urban agglomerates in the next four years. Those setting up the first 15,000 slow chargers will be eligible for an incentive of up to Rs 10,000 per charger, and those establishing the first 500 fast chargers will be eligible for a subsidy of up to Rs 5 lakh per charger.
All EVs shall be exempted from road tax and feels for issue or renewal of registration certificate and other scrappage incentives, while banks and FIIs will offer preferential interest rates to EV customers in segments like e-autos, goods vehicles or cabs, besides incentives or charging stations.
Maharashtra is among the many Indian states to revise/launch its EV Policy. Recently, Gujarat and Karnataka have also revised their policies to enable the manufacturing of EVs in the state, as well as promote their adoption through subsidies and tax exemption.
Several EV companies and industry bodies have lauded the policy, stating that the newly added incentives and manufacturing efforts will help lower the price of EVs in the state and promote their faster adoption among the masses.