Rajasthan Govt To Subsidise E2Ws and E3Ws, No Subsidy For E-Cars or Buses


The quantum of the subsidy for two-wheeler and three-wheelers also is lower than the other states

The Rajasthan Government on Friday announced a policy to subsidise the sale of electric vehicles (EV) making it the latest state to have such a policy after Maharashtra, Gujarat and Delhi.

The state government of Rajasthan is the newest addition to a slew of Indian states providing subsidies and incentives in order to boost the adoption of electric vehicles in the state.

The Rajasthan government has announced that it would refund the state component of the goods and services tax (SGST) to buyers of all EVs in Rajasthan between April this year and March 2022.

Additionally, buyers of electric two-wheelers and three-wheelers would be given additional cash subsidies between Rs 5,000 and Rs 20,000 depending on the size of the battery equipped.

A major differentiator between the Rajasthan government’s EV policy to that of states like Gujarat or Maharasthra is that electric cars or buses will not be extended any cash subsidy. The quantum of the subsidy for two-wheelers and three-wheelers also is lower than the other three states mentioned.

These incentives will be on top of the subsidy extended by the centre under phase-2 of the Faster Adoption and Manufacturing of Electric and hybrid vehicles (FAME-2) scheme.

The activeness of the Centre and state governments to subsidize EVs is a positive step towards achieving electric mobility in the country.

Industry experts and OEMs have lauded these efforts by the states to accelerate EV adoption and contribute to decreasing the country’s carbon footprint.


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