Rajasthan announces EV policy 2021

Rajasthan’s government has released the Rajasthan Electric Vehicle Policy, 2021 for adoption of electric vehicles in the state. The state has followed the initiatives under various other states, such as Gujarat, Maharashtra and Delhi among others. As per the policy, the state will subsidise the upfront cost of electric vehicles for early adopters, by offering to reimburse the state goods and service tax (SGST) as well as extending a one-time incentive, that is decided upon basis the battery capacity of the vehicle sold. Electric two wheelers with a battery capacity of up to 2 kWh will be eligible for a subsidy of Rs 5,000; those with battery capacity of 2 to 4 kWh will be eligible for a Rs 7,000 incentive; those with a battery capacity of between 4 to 5 kWh will receive a Rs 9,000 incentive and the two wheelers with a battery capacity of over 5 kWh will be eligible for a Rs 10,000 incentive. The policy focuses on two and three wheelers. The subsidy is valid from April 1, 2021, until March 31, 2022, on all registered electric two wheelers and electric three wheelers in Rajasthan.

Recently, the state of Gujarat also announced its electric vehicle policy. The Gujarat policy for details a subsidy of Rs 20,000 for two wheelers that cost up to Rs 150,000. Thus, the incentives offered under the Rajasthan policy are not as much. However, the policy framework being set up is a step towards clean mobility in the state as well as in the country where there is a developing EV market.

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