Maharashtra incentivises electric vehicles in new policy

Aims for 3 lakh EV registrations per year till 2025

geetanjali

Geetanjali Minhas | July 14, 2021 | Mumbai


#environment   #electric vehicles   #energy   #Maharashtra   #Aditya Thackeray   #Mumbai  
Environment minister Aditya Thackeray after unveiling the Electric Vehicle Policy in Mumbai
Environment minister Aditya Thackeray after unveiling the Electric Vehicle Policy in Mumbai

To promote electric vehicles Maharashtra has announced its Electric Vehicle (EV) Policy 2021 specifically targeting six cities of Mumbai, Pune, Nagpur, Aurangabad, Amravati and Nashik. From April 2022 onwards all new government vehicles in the state will be electric vehicles.  

The primary objective of policy is to accelerate adoption of BEVs in the state so that they contribute to 10% (3,00,000) new vehicle registrations per year  by 2025. The six targeted cities should achieve 25% electrification of public transport and last-mile delivery vehicles by 2025.

From April 2022, all new government vehicles will be electric vehicles.  

The policy proposes setting up 2,500 charging stations in seven major urban agglomerates of Mumbai, Pune, Nagpur, Aurangabad, Nashik, Amravati and Solapur and four major highways: Mumbai-Pune, Mumbai-Nashik, Mumbai-Nagpur and Pune-Nashik.

The proposed policy will be in force for four years from notification in 2021, till 2025.

The policy encompasses demand side incentives, supply side incentives and incentives for charging infrastructure. Along with these, non-fiscal incentives and developing skilled manpower to support the EV transition is proposed in the policy.

For demand side proposed incentives are in addition to FAME II (Govt of India) Incentives and will be awarded to vehicle manufacturers based on no. of vehicles registered in Maharashtra.

For charging infra development incentives, slow chargers (15,000) will get incentives up to Rs 10,000 per charger and fast chargers (500) will receive incentives up to Rs 5,00,000 per charger.

Urban local bodies (ULB) will be encouraged to provide property tax rebates to residential owners for installing private charging infrastructure within their premises and for which ULBs / PWD / MSRDC should identify locations for charging infrastructure installation.

For supply side Incentives, all 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 Industries, energy and labour dept.

For non-fiscal incentives, the policy says that it shall endeavour to fast-track and ensure time bound registration of EVs, including EV fleets owned by aggregators, last mile delivery providers, logistics players, etc.

The policy will encourage fleet aggregators to operate electric vehicles as per the Motor Vehicle Aggregator Guideline 2020 issued by the Ministry of Road Transport and Highways.
Further, the policy mandates that all upcoming type of property projects have to mandatorily provide EV ready parking, residential buildings have to provide 20% EV parking, institutional and commercial complexes 25% and all government offices 100% EV parking.   

The steering committee under the chief secretary will assess the policy effectiveness and revise the policy on timely basis.
 
An EV monitoring Cell will be under the purview of the Environment and Climate Change Department.

A budget of Rs 930 crore has been provisioned for ‘demand side’ and ‘charging infra’ incentives for a period of four years. The policy provides for levying Green tax on re-registration of old vehicles, fuel cess etc for  implementation.

The Uddhav Thackeray government aims to transform Maharashtra into a leading state in terms of adoption of electric vehicles in the country as well as leading manufacturing and investment hub for the EV ecosystem globally.

The policy was approved in a cabinet meeting last week and was announced by the minister for environment, Aaditya Thackeray, additional chief secretary (Transport) Ashish Singh and senior government officials on Wednesday.

Welcoming the policy, transport expert Ashok Datar asked where will the funds come from if Maharashtra seriously wants to implement the policy, considering the fact that every state is facing a shortage of funds. He suggested that the government should start levying surcharge on regular cars which will encourage EVs and discourage non-EVs; otherwise the government will curtail budgets of other sectors.

“We must cross-subsidize and cars that use fossil fuels should bear the subsidy for EV. Subsidy on EV should be accompanied by at least doubling of one-time tax on regular cars and due to subsidy manufacturers should not increase the cost of EV. It should be specifically mentioned that if the cost of EV is increased, subsidy will not be available,” he said, adding that the government can further bring in electric buses and electric cycles so that a person earning Rs 25,000 too can afford an electric bicycle.

 

Comments

 

Other News

BRICS at 20: From economic weight to global influence

This year marks 20 years of BRICS, with India set to host the grouping’s leaders’ summit this weekend. The anniversary offers an opportune moment to assess BRICS’ growing importance at a time when the effectiveness of global governance and the credibility of multilateralism are under in

Former president Ram Nath Kovind on some of his unforgettable journeys

Triumph of the Indian Republic: My Life, My Struggles By Ram Nath Kovind Rupa Publications, 400 pages, Rs 795   All our presidents so far stand out, each for a different reason. Ram Nath Kovind, the 14th president of India, from 2017 t

Uday Kotak on history, Indian economy, growth and more

Pathbreakers: How 10 Visionary Leaders Transformed India by award-winning journalists  By Sucheta Dalal and Debashis Basu Rupa Publications, 304 pages, Rs 695  

₹5,000 crore saved from suspected financial fraud

In a significant gain for citizen protection in the digital economy, the Department of Telecommunications (DoT) has helped prevent suspected cyber fraud losses of more than ₹5,000 crore through its Financial Fraud Risk Indicator (FRI) within fifteen months of its launch on May 22, 2025. This money did

Capital acquisition proposals worth Rs 1.10 lakh crore for defence forces cleared

The Defence Acquisition Council (DAC), under the chairmanship of Raksha Mantri Rajnath Singh, on Monday accorded Acceptance of Necessity (AoN), that is, in-principle administrative approval to various acquisition proposals of the defence forces at an estimated cost of about Rs 1,10,000 crore.

How Rafi, Raj Kapoor helped pave the way for a great uranium deal

There`s a certain moment in diplomacy that`s too personal to be captured in a communiqué, too small to make the front page, but more revealing than the front page. This week, prime minister Narendra Modi reached Tashkent and, amid the pomp of state visits, managed to evoke the old Bollywood tunes

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter