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Maharashtra government bringing electric vehicle policy

Maharashtra government bringing electric vehicle policy

Snapshot: The Maharashtra government, is all set to finalize a policy that will encourage the production as well as the interest of people in purchasing electric vehicles.

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The Maharashtra government, is all set to finalize a policy that will encourage the production as well as the interest of people in purchasing electric vehicles. As per the recent exclusive reports from ET, the draft policy includes SGST (state goods and services tax) rebate to the manufacturers for the reduction of manufacturing cost. It is not just beneficial for industrialists but the state government will also offer a subsidy to those who will take the initiative of buying vehicles running on electricity.

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As per officials, the state government is setting a 3 to 5-year plan in which 1 lakh vehicles will be manufactured every year. For buyers, 15% of the total amount will be given as subsidy as per the draft policy. The government is also planning to bring down the maximum retail price of vehicles by not imposing any SGST on purchase.

The state government is endowing this benefit for first few lakhs of customers to encourage the demand. “The production cost of electric vehicles is much higher than conventional ones, but this is the right time to increase their use for the reduction of pollution. That is why we are offering a 15 % subsidy to buyers that will automatically transfer to their bank accounts within 3 months of purchase.” - Said by a government official with the terms and conditions of not disclosing their name publicly. 

Mahindra and Mahindra are already planning to settle a plant of manufacturing at Chakan (Pune) but they are asking for 30% capital subsidy. Instead of giving this subsidy, the government is offering SGST refund for auto components for bringing more transparency. Not just personal vehicles, but this policy are also made for encouraging electric automobiles in public transportation. 

To analyze the favorable conditions, the state government is planning to initiate a pilot scheme of running electric buses in major cities i.e. Mumbai, Nagpur, Thane and Nasik. In this 3-5 year planning, the government wants to add 5% electric vehicles in public transport. 

Government Sops 
This policy includes subsidies to buyers and SGST refund for manufacturers. 

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