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Gujarat announces EV policy; to give up to Rs 1.5 lakh subsidy on electric cars

Gujarat announces EV policy; to give up to Rs 1.5 lakh subsidy on electric cars

It is estimated that around 1.10 lakh electric two-wheel vehicles, 70,000 three-wheelers and 20,000 four-wheelers will be used in the next four years following the implementation of policy.

Chief Minister Vijay Rupani said the policy aims to bring at least 2 lakh electric vehicles on the state roads in the next four years. Chief Minister Vijay Rupani said the policy aims to bring at least 2 lakh electric vehicles on the state roads in the next four years.

The Gujarat government on Tuesday announced 'Gujarat Electric Vehicle Policy 2021' to promote use of electric vehicles in the state.

Announcing the policy, Chief Minister Vijay Rupani said it aims to bring at least 2 lakh electric vehicles on the state roads in the next four years. Besides promoting use of electric vehicles (EVs), the policy aims to make Gujarat a hub for EVs and related components, encourage investments in electric mobility and reduce vehicular pollution.

It is estimated that around 1.10 lakh electric two-wheel vehicles, 70,000 three-wheelers and 20,000 four-wheelers will be used in the state in next four years following the implementation of this policy, Rupani said.

The state government will provide a subsidy up to Rs 20,000 on purchase of an electric two-wheeler, Rs 50,000 for three-wheeler and Rs 1,50,000 on purchase of a four-wheeler. The subsidy will be transferred directly to the bank accounts of owners through direct benefit transfer.

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The subsidy will be provided for private as well as commercial vehicles, and will be in addition to the subsidy available under Centre's FAME-II scheme for EVs. Besides, registration for EVs at regional transport offices (RTO) in Gujarat will also be free. With the new policy, the per kilowatt subsidy in Gujarat will be double of that available in any state, the state government claimed.

The policy also focuses on setting up charging infrastructure for EVs. While 278 charging stations, mostly on highways, have been approved, the state government is planning to add another 250 in near future.

"In all, we are aiming for 500 charging stations, which can be set up at petrol pumps or roadside hotels too. This will help electric car owners to travel longer distances. We will also provide capital subsidy on the investment made by entrepreneurs to set up such charging stations," Rupani said.

The policy will help in saving fuel worth Rs 5 crore within the next four years, while at least 6 lakh tonnes of carbon dioxide emission will be reduced annually.

Welcoming the EV policy, electric two-wheeler maker Ather Energy's CEO and co-founder Tarun Mehta said it can make EVs in the state cheapest in the country.

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