Gujarat Working on EV Policy, Expects 1 Lakh EVs by 2022

India Below Asian Average in Electric Vehicle Penetration; CY 2022 Pegged at Just 1.1%

The Gujarat government plans to come out with a policy soon announcing huge incentives for using EVs and aims to have 1 lakh EVs on road by 2022.

Powered by the Centre’s cue, Gujarat is expected to charge up its clean-energy push. The state government plans to come out with a policy soon announcing huge incentives for using electric vehicles (EV) and aims to have one 1 lakh EVs on road by 2022.

Top officials said the government is earmarking Rs 798 crore in subsidies and tax waivers to promote the use of electric vehicles (EVs). “The policy will cover two-wheelers and commercial vehicles,” an official told the TNN, adding, “Deliberations are underway on whether to include privately owned cars or not.”

It is estimated that 80,000 of the EVs will be two-wheelers; 14,000, three-wheelers; 4,500 four-wheeler commercial taxis; and 1,500 public buses. Battery charging stations for EVs will be set up across the state, the draft policy says. Officials of energy, transport, urban development, and finance departments of the state are giving final touches to the policy.

CM Vijay Rupani has asked officials to accord top priority to the formulation of the policy as PM Narendra Modi has called for adoption of pollution-free EVs. In fact, NITI Aayog has proposed that after 2030, only EVs should be sold in the country.

In July, NITI Aayog CEO Amitabh Kant said that India has put in place a game plan for electric vehicles and its components like batteries to ensure clean cities, reduce imports and utilise solar power. Adding that domestic battery manufacturing for electric vehicles provides a “massive market opportunity”, and also quickens the transition to such environment-friendly transport, which is vital for the country to help combat pollution, congestion, strengthen energy security and create jobs.

Around the same time, the Gujarat Energy Development Agency (GEDA) has issued two Expression of interests (EOI) calling out reputed manufacturers for their authorisation to the market and then the distribution of battery-operated 2 and 3 wheelers. The EOIs had been invited under the GEDA Subsidy Program for the financial year (FY) 2019-20, which is a continuation of the state’s annual exercise to support the adoption of electric vehicles in the western state.