Rajasthan last week became the 16th state in the country to roll out an EV policy that will subsidise customers of these vehicles by offering to reimburse SGST (State Goods and Service Tax) besides a one-time incentive based on the battery capacity.
Revolt Motors welcomes the Rajasthan EV Policy 2021, wherein customers of electric two-wheelers will get incentives based on the battery capacity of the vehicle. With a battery capacity of 3.24KWh, these incentives for Revolt bikes work out to Rs 10,690 per bike, the RattanIndia-backed company said in a statement.
The incentives include a refund of state GST amounting to 2.5 per cent of the vehicle cost, it said.
The implementation of Rajasthan Electric Vehicle Policy 2021 will make EV motorcycles more affordable and accessible to consumers in the state, it added.
These incentives are over and above the FAME II incentives for EV manufacturers recently announced by the central government. Anjali Rattan, Business Chairman of RattanIndia Enterprises said, “The country expects to have more than 50 lakh e-two wheelers over the next 5 years. These incentives by state governments will certainly expedite reaching that goal”.
Rahul Sharma, MD of Revolt Motors said, three big states have come out with EV incentive policies in the last one month alone and many states are working on releasing their incentive schemes.
''We are pleased to see yet another state, Rajasthan, introducing a new EV policy in order to accelerate the adoption of electric vehicles across the country.
“After years of low penetration, despite various government campaigns, these state-level initiatives are expected to increase the awareness on the benefits of EV and its future,” said Jeetender Sharma, MD & Founder of Okinawa Autotech. Terming the Policy a “bold,” announcement, Chief Operating Officer at Vadodara based e-two-wheeler manufacturer WardWizard Innovations and Mobility Ltd, Sheetal Bhalerao said, the move will “further attract more masses and first-time buyers towards the EVs”.
Such incentives and subsidies by the states outlay the commitment to making India carbon-free and promote sustainable mobility to every nook and corner of the country, Bhalerao said. WardWizard Innovations and Mobility owns the ''Joy e-Bike' brand of e-two-wheelers. Credit rating agency Icra said, “The policy will support EV penetration in the state in line with other states”. “With the announcement of its EV policy last week, Rajasthan became the 16th state in India to join the EV bandwagon. As part of its policy, the state government has offered an incentive Rs 5,000-10,000/vehicle and Rs 10,000-Rs 20,000/vehicle for electric 2W and 3Ws, respectively,” said Shamsher Dewan, Group Head & Vice President - Corporate Sector at Icra. The incentive varies as per battery size as measured in Kwh terms. In addition, the government has also offered SGST waiver for all EVs registered before March 31, 2021, he said, adding this will translate to approximately an additional benefit of 2.5 per cent as EVs are taxed at 5 per cent GST.
Rajasthan accounted for 5 per cent of the total automotive sales in India, but a higher 9 per cent of total 2W sales in FY2021, he added.