Gujarat announces EV policy, predicts 110,000 vehicles on road by 2023

Gujarat Chief Minister Vijay Rupani on Tuesday announced the 'Gujarat Electric Vehicle Policy 2021' which, according to him, has been designed to see at least two lakh electric vehicles on the state roads in the next four years.

To encourage people to turn to e-vehicles, the state government would provide subsidies ranging from Rs 20,000 to Rs 1,50,000 on the purchase of vehicles under this policy, which will remain effective for four years, Rupani said here at a press meet.

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, the CM said.

The state government will provide a subsidy up to Rs 20,000 on the purchase of an electric two-wheeler, Rs 50,000 for three-wheeler and Rs 1,50,000 on the purchase of a four-wheeler, he said.

As per a rough estimate, the new policy will help in saving fuel worth Rs 5 crore every year, Rupani said, adding that carbon dioxide emission will be reduced by six lakh tonnes annually.

The policy also focuses on providing battery charging infrastructure for e-vehicles. 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 CM expressed confidence that the policy would encourage auto-ancillary industry and manufacturing of electric batteries in the state.

He claimed Gujarat has become the first state which would provide subsidies on the purchase of e-vehicles, saying other states only provide road tax or registration fee waiver, which is very nominal.