The government of Rajasthan announced a policy to subsidize the sale of electric vehicles (EV) on Friday, making it the youngest state with such a policy after Maharashtra, Gujarat and Delhi.
According to the policy document, the government component of goods and services tax (SGST) would be refunded to buyers of all electric vehicles in Rajasthan between April this year and March 2022.
Additionally, buyers of electric two- and three-wheelers would receive additional cash subsidies of between 5,000 and 20,000 rupees, depending on the size of the battery fitted.
However, unlike other states with buy-side subsidies for electric vehicles, the Rajasthan government will not increase cash subsidies for electric cars or buses. The amount of funding for two- and three-wheelers is also lower than in the other three federal states mentioned.
These incentives are in addition to the grants provided by the Center under Phase 2 of the Faster Electric and Hybrid Vehicle Adoption and Manufacturing (FAME-2) program. Last month, the center also doubled the FAME-2 subsidy for two- and three-wheelers in an effort to improve pickup after cautious consumer response.
The EV industry is relying on these subsidies to accelerate the rollout of these vehicles in the country after years of low adoption despite ambitious projections.
According to Sohinder Gill, director general of the Society of Manufacturers of Electric Vehicles (SMEV), a lobby for the electric vehicle industry, these measures could help bridge the gap between consumers who are aware of electric vehicles and those who are willing to buy them , close.
