Maharashtra’s bold new EV policy high on incentives for buyers and industry  

by Ajit Dalvi 13 Jul 2021


The Maharashtra government today unveiled a comprehensive EV Policy 2021 designed to accelerate both adoption of electric vehicles (EVs) in the state as well as set up EV manufacturing and charging infrastructure. The overarching aim is for EVs to contribute to 10% of new vehicle registrations – or 300,000 EVs – a year by 2022.

The policy comprises three direct incentives for demand, supply and charging infrastructure. There will also be non-fiscal incentives for developing skilled manpower to support the transition to EVs across the state.

The maximum budgetary provision for ‘demand side' and ‘charging infrastructure' incentives is Rs 930 crore for four years (2021-2025). The EV policy implementation will be funded through green tax levied on re-registration of old vehicles and fuel cess.

Targeting a speedy shift to EVs
Along with the earlier-mentioned target of 10% of new vehicles sales to be EVs, Maharashtra is targeting six urban cities (Mumbai, Pune. Nagpur, Aurangabad. Amravati and Nashik) to achieve 25% electrification of public transport and last-mile delivery vehicies by 2025. Also from April 2022, all new government vehicles will be EVs.

The EV policy indicates the state government’s plan to fast-track and ensure time-bound registration of EVs, including EV fleets owned by aggregators, last mile delivery providers, logistics players, etc.

Policy will encourage fleet aggregators to operate electric vehicles, as per the Motor Vehicle Aggregator Guideline 2020 issued by Ministry of Road Transport and Highways

High on incentives for 2-, 3, 4-wheeler buyers
Take a look at the data sheet below and there are ample incentives for electric two-, three- and four-wheelers.  Early adoption of EVs till December 31, 2021 will draw maximum benefits of Rs 44,000 on e-two-wheelers, Rs 92,000 on e-three-wheelers and Rs 175,000 on e-four-wheelers.  

The proposed incentives are in addition to FAME Il incentives and will be awarded to vehicle manufacturers based on the number of vehicles registered in Maharashtra

Focus on setting up charging infra
The state government also plans to aggressively development EV charging infrastructure, estimated at around 2,500 charging stations, in 7 major urban agglomerates (Mumbai, Pune, Nagpur, Aurangabad, Nashik, Amravati and Solapur) and 4 major highways (Mumbai -Pune, Mumbai - Nashik, Mumbai - Nagpur and Pune - Nashik).

While slow chargers (15,000 units) will get incentives up to Rs. 10,000 per charger, fast chargers (500 units) will be incentivised up to Rs 500,000 per charger. The government document states that “urban local bodies will be encouraged to provide property tax rebates to residential owners for installing private charging infrastructure within their premises.” ULBs/PWD/ MSRDC will identify locations for charging infrastructure installation.

Real estate developers will be mandated for mandatory EV parking. As per the government directive, there wil be 20% mandatory EV-ready parking in residential locations, 25% in institutional and commercial complexes, and 100% in government offices. 

Benefits to EV makers setting up projects
The EV Policy documents says that "all the benefits under 'D+' category of mega projects will be provided to these industries irrespective of location of manufacturing unit in the state. This incentive will be applicable from the date of notification of policy and will be disbursed through the Industries, Energy and Labour Deparment'.

Non-fiscal incentives
The EV policy aims to fast-track and ensure time-bound registration of EVs, including EV fleets owned by aggregators, last-mile delivery providers and logistics players. In line with the MoRTH-issued  Vehicle Aggregator Guideline 2020, it will encourage fleet aggregators to operate EVs. 

Policy Implementation
The state government is instituting a Mechanism Steering Committee under the chairmanship of Chief Secretary and other concerned department principal secretaries, who will assess the policy effectiveness and revise the policy, considering the EV ecosystem and environment. There will be a Climate Change Department which will drive the 'EV Monitoring Cell’.

Indian states race to fast-track EV adoption
With growing consumer awareness about EVs, the recently enhanced FAME subsidy for two-wheelers, termed the ‘low-hanging fruit’ of the EV industry and also sky-high wallet-busting petrol prices, the EV industry is seeing considerable traction. This can be seen in terms of new investment towards setting up manufacturing plants, EV infrastructure as well as vehicle buying, particularly two- and three-wheelers.

What’s more, over the past year, a number of states across India have come up with their own EV policies all designed to incentivise buying as well as to make manufacture of these eco-friendly vehicles a smooth experience. In August 2020, Delhi notified its EV Policy, which aims to register 500,000 electric vehicles in the city by 2024. In June 2021, Gujarat rolled out its own policy, which targets a total of 200,000 EVs which includes 110,000 e-two-wheelers; 70,000 e-three-wheelers and 20,000 e-four-wheelers.

In September 2019, traditional automotive hub Tamil Nadu had drafted a policy to be India’s ‘EV hub’, aiming to attract Rs 50,000 crore investment

Industry lauds Maharashtra EV Policy
The Maharashtra government's progressive EV policy has begun drawing a response from captains of industry. 

Sohinder Gill, Director-General, Society of Manufacturers of EVs (SMEV)
"The Maharashtra government's announcement is not only encouraging for the EV industry but also solidifies India's vision of becoming a global EV hub. These much-awaited measures offer to bridge the chasm between awareness and consumer sentiment towards e-mobility. We hold steadfast optimism towards states announcing a revised policy with a special focus on demand creation. An inclusive and pragmatic approach to e-mobility and charging infrastructure is imperative to boost innovation and increase uptake among consumers. We thank the Maharashtra government for its EV Policy, which will create a positive impact nand help accelerate adoption of green vehicles in the state."

Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors
“We are delighted to see a very enabling policy by the Maharashtra government . It is a very welcome move and indeed a very strong resolve shown by the government towards EV adoption. Also, the support extended in increasing charging infrastructure will offer EV owners a hassle-free commute. This visionary policy will enable a faster transition to EVs."

Tarun Mehta, CEO and Co-founder, Ather Energy
“The Maharashtra government's new EV Policy is extremely comprehensive and has taken into account the entire EV ecosystem. The incentives offered for both the demand and supply side will accelerate the adoption and the manufacturing of EVs in the country. In addition to demand incentives, the policy also incentivises buyback and vehicle scrappage. Early bird incentive is a great mechanism to jump-start things, as well as to drive festive sales. Ather Energy is geared to cater to the rising demand in Maharashtra through its retail outlets in key cities like Mumbai, Pune and plans to expand to Nashik and Nagpur soon. Such progressive policies introduced by the state governments have the potential to drive faster adoption of EVs in the country.”

Nagesh Basavanhalli, MD & Group CEO, Greaves Cotton, & Director,
Ampere Vehicles

“The EV policy announced by the Maharashtra government will be a great enabler of clean and green mobility. This will not only boost the growth of electric vehicles but will also provide employment at various levels and give impetus to the setting up of charging infrastructure. This coincides with Ampere's ambition of expanding in the state and ensuring easy accessibility of an affordable range. With Greaves Retail outlets and Ampere Showroom dealerships across the state, we appreciate this initiative.” 

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