Gujarat government offers sops for electric two-wheelers, e-rickshaws

by Sumantra B Barooah 18 Sep 2020


Gujarat has now joined the list of states incentivising usage of electric vehicles (EV), albeit for select segments, and users.

Vijay Rupani, chief minister, Gujarat on Thursday announced a subsidy of Rs 12,000 on electric two-wheelers, and Rs. 48,000 on e-rickshaws with the objective of curbing air pollution in the state. There’s a condition though, to be met by electric two-wheeler buyers in Gujarat in order to avail the Rs 12,000 incentive. The incentive is only for students of standard 9 and above.

There are also caps on the number of two- and three-wheeled EVs that can be availed under the scheme. 10,000 electric two-wheelers and 5,000 e-rickshaws can benefit from the incentive programme.  

The incentive scheme for EVs was announced as part of the state government’s five development projects, ‘Panchsheel’ shift, to celebrate Prime Minister Narendra Modi’s 70th birthday. It was on 17th September, 2009 Narendra Modi, then CM of Gujarat, had set up a dedicated Climate Change Department in the state.

Chief minister Rupani also announced a Rs 50 lakh scheme for creating charging infrastructure for EVs in the state.

Reacting to the move by the Gujarat government to promote EVs, especially two-wheelers, Ather Energy’s co-founder and CEO, Tarun Mehta says, “The new subsidy offered by the Gujarat government makes high-performance EVs more affordable and a better choice for consumers.  We are very pleased with the timing of the policy as we begin deliveries of the Ather 450X in Ahmedabad from November 2020. The state's policy effectively reduces the on-road cost of our scooters by INR 12,000, making the Ather 450X far more affordable.” He also hopes that the subsidy will not be limited only to the student community in the future. Ather Energy also plans to set up up 10-15 fast charging points in Ahmedabad.

The Gujarat government is yet to announce an EV policy, though it has drafted one. According to the draft policy, the state may have 100,000 EVs on its roads by 2022. Close to Rs 800 crore is reportedly being earmarked to incentivise adoption of EVs in the state.