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DEC 06 2017

Draft Maharashtra EV policy moots 15% subsidy on price of electric vehicles

  • Economic Times, ET Bureau / Hyderabad
  • Created: Wed 06th DEC 2017

 

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.

“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,” said a government official, who did not wish to be identified. The subsidy is likely to be restricted to the first few lakh customers, though, officials said.

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.

The policy aims to encourage the use of electric vehicles for public transport as well. The state is planning a pilot scheme to test electric buses in Mumbai, Pune, Nagpur, Thane and Nashik. The government wants electric vehicles to comprise 5% of the total public transport in the next three to five years, officials said.

GOVERNMENT SOPS

Measures include refunding SGST to the manufacturers and offering a subsidy to those buying vehicles

Tags

TOTAL Maharashtra Tax Mumbai MAHINDRA

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