Maharashtra becomes first state in India to incentivise EVs

The growing buzz about electric vehicles (EVs) just got louder in India. As is known, the government’s ambitious goal to achieve 100 percent electrification by 2030 is seeing both automakers and the compondent industry take on the challenge.

Supporting the Faster Adoption of Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, the government of Maharashtra has moved a step further and is the first state in the country to incentivise EVs to drive their sales in the state. It is a far-reaching move which will give a fillip to EV sales and could also see other states follow. 

Under the scheme, the State government has not only exempted EVs from road tax and registration fees but also will give a maximum grant of 15 percent of the EV’s cost to the last owner at the end of the vehicle’s lifecycle. Moreover, the State government will give 25 percent subsidy, amounting to maximum of Rs 10 lakh on the first 250 charging stations to be set up in the state and has allowed EV makers to install charging points at fuel stations after getting clearance and complying with safety norms. Additionally, non-commercial electricity rates will be applied to these charging stations.

The state government will, initially, start with Mumbai, Pune, Nagpur, Aurangabad, Thane and Nashik to incentivise the EV sales.