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Maharashtra EV policy moots 15pct subsidy on price of electric vehicles

Auto News - Published on Thu, 07 Dec 2017

Image Source: energy.gov
ET reported that the Maharashtra government is finalising a policy to encourage manufacturing as well as purchase of electric vehicles. According to the draft policy, a copy of which was accessed exclusively by ET, the measures include refunding the state goods and services tax (SGST) to the manufacturers and offering a subsidy to those buying electric vehicles. The state envisages manufacturing of about one lakh electric vehicles per year in the next three to five years, officials said.

As per the draft policy, which is likely to be cleared within a month according to officials, the state is planning to give a subsidy of 15% of the total price of electric vehicles to the buyers. Moreover, to bring down the retail price of electric vehicles, the state is planning not to levy the SGST on the purchase of the vehicles.

A government official, who did not wish to be identified, said that “Electric vehicles are costlier than conventional ones, but they are the need of the hour as they reduce pollution. So we have decided to give those buying the vehicles 15% subsidy, which will be transferred to their account within three months of purchase.” Officials said that the subsidy is likely to be restricted to the first few lakh customers, though.

Although manufacturers such as Mahindra & Mahindra, which is planning an electric vehicle plant at Chakan in Pune, wanted a capital subsidy of 30%, the state government has refused to accede to the demand and has instead planned to refund the automakers on the SGST for auto components.

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Posted By : Rabi Wangkhem on Thu, 07 Dec 2017
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