Bihar, Gujarat, Goa and 5 other states to bring out policy on electric vehicles soon

After Karnataka, Kerala and Maharashtra, eight more states are readying policies to nudge electric mobility within their boundaries. The states are Bihar, Madhya Pradesh, Gujarat, Tamil Nadu, Chhattisgarh, Odisha, Goa and Assam.

During a global mobility summit Move, Rajiv Kumar, vice chairman, National Institution for Transforming India (NITI) Aayog had said that government was looking at a “paradigm shift” in the space of electric vehicles where “Centre will push the policy forward not just in Centre but also in states”.

Kumar had said that around 15-20 states have already submitted their respective proposals and states would bring their policies “soon after” the Move Summit. After these eight states submit their policies, number of states with a proper EV policy in place will reach 14.

Progress so far

As of October, Karnataka, Maharashtra, Kerala, Uttarakhand, Andhra Pradeshand Telangana have a policy for electric vehicles.

While Karnataka provides 100 percent reimbursement on land conversion cost (from agricultural to industrial), Maharashtra and Kerala have different land acquisition rules. Uttarakhand and Andhra Pradesh have policies to provide land at subsidised rates subject to state-specific conditions.

Similarly, all these states have sunset clause on provision of exemption on road tax and registration fees on electric vehicles. For SGST, while Kerala, Uttarakhand and Andhra Pradesh provide full reimbursement, Maharashtra provides no SGST benefit. Telangana provides reimbursement up to 75 percent.

These states also provide capital incentives up to 25 percent on setting up manufacturing units. Karnataka provides 25 percent (or 20 percent) incentive to micro enterprises (or small enterprises) and up to Rs 50 lakh to medium enterprises. While Maharashtra provides  up to 20 percent incentive on setting up a manufacturing unit in the state, Uttarakhand provides seven percent reimbursement on loan taken for setting up the “plant and machinery” etc. Other states have state-specific rules.


Electric Vehicles growing in these States

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